Refer to the information in PA12-2.

Required:
Prepare the cash flows from operating activities section of the 2013 statement of cash flows using the directmethod.

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Income Statement Selected Balance Sheet Accounts 2013 2012 Sales Revenue Expenses $48,600 Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 21,000 2,000 9,000 4,500 1,900 1,800 1,400 $ 7,000 Accounts Receivable Merchandise Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries Payable Utilities Payable $560 990 420 25 25 100 20 $580 770 460 20 28 60 15 Net Income