Answer Happy

The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income Income Statement Selected Balance Sheet Accounts Ending Balances Accounts Receivable Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable $ 585 840 445 35 30 70 30 $ 43,600 18,500 1,500 8,500 4,000 1,650 1,550 1,150 $ 6,750 Beginning Balances $ 630 695 510 25 38 45 20

Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) DIRECT PRODUCTS COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities: $ 0