Use the following income statement and information about changes in noncash current assets and current liabilities to present the cash flows from operating activities using the direct method:

Changes in current asset and current liability accounts during the year, all of which related to operating activities, were as follows:

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ECOSYSTEMS COMPANY Income Statement For Year Ended December 31, 1990 Sales $225,000 Cost of goods sold. 130.000 Gross profit from sales. $ 95,000 Operating expenses: Salaries and wages $31,250 Depreciation expense 3,750 Rent expense 9,000 Amortization of goodwill 1,750 Interest expense. 2,375 Total Gain on sale of machinery Net income 48,125 $ 46,875 1,000 $ 47,875