Cash Flows from Operations (Direct Method)

Neil Brown is the proprietor of a small company. The results of operations for last year are shown, along with selected balance sheet data. From the information provided, determine the amount of net cash flows provided from operations, using the direct method.

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Sales revenue Cost of goods sold Gross margin Operating expenses: Wages expense Utilities expense Rent expense Insurance expense Net income $510,000 320,000 $ 75,000 2,500 $190,000 35,400 6,900 119,800 $ 70,200