1. The Logan's Landing Co. reported the following condensed income statement for 2016:

Logan's Landing CO. Condensed Income Statement

For the Year Ended December 31, 2016

Sales

$305,000

Cost of goods sold

150,000

Gross profit

$155,000

Operating expenses:

Depreciation.

$42,000

Insurance expense

5,000

Salaries expense

80,000

127,000

Income before taxes

$ 28,000

Income taxes

6,000

Net income

$ 22,000

Also during 2016, the company's current assets and current liabilities changed as follows:

Increase(Decrease)

Required:

Prepare the Net Cash Flow from Operating Activities section of the statement of cash flows for 2016, using the direct method.