A consolidated income statement and selected comparative consolidated balance sheet data for Palano Company and subsidiary follow: Palano Company and Subsidiary Consolidated Income Statement for the Year Ended December 31, 2015 Sales $687,500 Cost of sales 265,200 Gross profit 422,300 Operating expenses: Depreciation expense $75,000 Selling expenses 122,900 Administrative expenses 83,500 281,400 Consolidated net income 140,900 Less noncontrolling interest in consolidated net income 35,225 Controlling interest in consolidated net income $105,675 Accounts receivable Inventory Prepaid selling expenses Accounts payable Accrued selling expenses Accrued administrative expenses December 31 2014 2015 $229,095 $311,794 192,703 233,846 26,104 29,400 99,378 78,800 95,095 84,600 55,457 39,391 (a) Prepare the cash flow from operating activities section of a consolidated statement of cash flows assuming use of the Direct method. Consolidated Statement of Cash Flows Cash flows from operating activities - Direct Method Cash Received from Customers 687500 > Less Cash Paid for Merchandise Purchases 263000 Selling Expenses 122000 Administrative Expenses 85000 470000 Net Cash Provided by Operating Activities 217500 Click if you would like to Show Work for this question: Open Show Work