Presented below are selected balance sheet information and the income statement for Burch Company.
Selected Balance Sheet Information

Burch Company
Income Statement
For the year ended December 31, 2019
Sales ............................................... $ 250,000
Cost of goods sold .............................. (160,000)
Depreciation expense ............................. (15,000)
Other expenses .................................... (35,000)
Income tax expense ............................... (12,000)
Net income ......................................... $ 28,000
Required:
Compute the net cash flows from operating activities using the direct method?

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Dec. 31, 2019 Dec. 31, 2018 Cash $20,000 $17,500 Accounts receivable 18,000 15,000 1,000 21,000 Inventory Accounts payable Income taxes payable 2,500