Using the following income statement and cash flow adjustment information, prepare the Operating Cash Flow section of the statement of cash flows using the direct method.
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,800
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,100
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450
Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,650
Adjustments:
(a) Interest payable increased by $80.
(b) Accounts receivable decreased by $320.
(c) Inventory decreased by $180.
(d) Accounts payable decreased by $210.