The following condensed information (dollars in thousands) is available from Mary’s Muffins.Assume that all sales are credit sales (accounts receivable) and all purchases are also on credit (accounts payable).

December 31 Year 1 Year 2 Balance Sheet Data:

Accounts receivable $55 $ 53 Prepaid expenses 13 15 Salaries payable 22 25 Taxes payable 17 13 Inventory 32 26 Accounts payable 27 21 Income Statement Data:

Sales revenues $550 Cost of goods sold 210 Salaries expense 112 Tax expense 57 Depreciation expense 29 Other expense $ 21 Required Prepare the operating activities section of Year 2’s statement of cash flows,using the direct method.