Use the following excerpts from Fromera Company’s financial information to prepare the operating section of the statement of cash flows (direct method) for the year 2018.

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Sales Cost of Goods Sold Operating Expenses, other than depreciation expense Depreciation Expense Gain on Sale of Plant Assets Net Income Accounts Receivable (associated with Sales) Inventory (associated with Inventory) Accounts Payable (associated with Inventory) Accrued Liabilities (associated with Other Expense) Accounts Receivable (associated with Sales) Inventory (associated with Inventory) Accounts Payable (associated with Inventory) Accrued Liabilities (associated with Other Expense) 2018 Income Statement $ 299,000 (135,000) (27,000) (17,000) 16,500 136,500 Balance Sheets Dec. 31, 2018 $45,300 1,600 22,500 900 Dec. 31, 2017 $43,400 1,800 21,250 1,150