Balances of the current assets and current liability accounts at the end and begginging of the year as follow:

END BEGINNING

CASH $62,000 $73,000

ACCOUNTS RECEIVABLE (NET) 75,000 60,000

INVENTORIES 54,000 47,000

ACCOUNTS PAYABLE

(merchandise creditors) 43,000 37,000

SALARIES PAYABLE 2,800 3,800

SALES (on account) 210,000

COST OF MERCHANDISE SOLD 70,000

OPERATING EXPENSES OTHER THAN DEPRECIATION 67,000

USE THE DIRECT METHOD TO PREPARE THE CASH FLOWS FROM OPERATIONG ACTIVITIES SECTION OF A STATEMENT OF CASH FLOWS.