Colassard Industries has the following data available for preparation of its statement of cash flows:

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.

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Sales revenue Cost of goods sold Wages expense Insurance expense Interest expense Income taxes expense Accounts receivable, decrease Inventory, increase Prepaid insurance, increase Accounts payable, increase Notes payable, increase Interest payable, increase Wages payable, decrease $385,800 203,100 62,400 13,780 15,150 27,400 15,600 $ 8,710 1,550 3,680 40,000 1,240 6,700