Brief Exercise 23-4

Culver Corporation had the following 2017 income statement.

Sales revenue		$196,000
Cost of goods sold		108,000
Gross profit		88,000
Operating expenses (includes depreciation of $23,000)		51,000
Net income		$37,000

The following accounts increased during 2017: Accounts Receivable $12,000, Inventory $12,000, Accounts Payable $12,000. Prepare the cash flows from operating activities section of Culvers 2017 statement of cash flows using the direct method.

Culver Corporation Statement of Cash Flows-Direct Method (Partial)