ABC reported 2020 net income of $163,000 and sales of $367,000. Expenses for the year were as follows: depreciation expense $31,000, cost of goods sold $100,000, salaries and wages expense $54,000, rent expense $12,000 and loss on the disposal of equipment $20,500.

Direct method

Upon a review of the comparative statements of financial position, you note the following details: increase in accounts receivable $5,200, increase in inventory $3,300, decrease in accounts payable $2,700, decrease in salaries and wages payable $4,500 and decrease in prepaid rent $1,300. Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities $