Operating Activities Section, Direct Method. Larry€™s Luggage Company provided the following balance sheet and income statement for the current year. Prepare the operating activities section of the cash flow statement using the direct method. Assume accrued expenses relate to selling, general and administrative expenses.

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Larry's Luggage Company Balance Sheets At December 31 Property, Plant, and Equipment-net Income Taxes Payable Total Current Liabilities Noncurrent Liabilities Total Noncurrent Liabilities Shareholders Equity Common Stock, $1 par value Total Liabilities and Sharehclders Equity Larmry's Luggage Company Income Statement For the Year Ended December 31 Sales Cost of Goods Sold Gross Profit Selling. General, and Administrative Expenses Depreciation Expense Total Operating Expenses Income Before Interest and Taxes Interest Expense Investment Income Income Before Tax Income Tax Expense Net Income $56,000 33,600 $22,400 $11,600 6,000 $ 17600 $ 4,800 $12,100 634 $ 3.334 (1,334 2,000