Putter Corporation owns 70 percent of the voting common stock of Sand Company. At December 31, 20X1, the companies reported the following:

During 20X1, Sand sold inventory costing $70,000 to Putter for $100,000, and Putter resold 40 percent of the inventory prior to December 31, 20X1. No intercompany inventory transactions occurred prior to 20X1, nor did intercompany receivables and payables exist at December 31, 20X1.

Required

Using the direct method, prepare the cash flows from the operating activities section of the consolidated statement of cash flows for 20X1 in good form.

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Sales, 20X1 Cost of goods sold, 20X1 Increase (decrease) in 20X1: Inventory Accounts receivable Accounts payable Putter Corporation $400,000 235,000 (22,000) 9,000 (31,000) Sand Company $240,000 105,000 16,000 (2,000) 15,000