CLEAR TRANSMISSIONS COMPANY

Income Statement

For the Year Ended December $31,2024($$ in thousands$)$

Sales $ $1,920$

Cost of goods sold $768$

Gross margin $1,152$

Salaries expense $ $340$

Depreciation expense $230$

Amortization expense $30$

Interest expense $80$

Loss on sale of cash equivalents $16696$

Income before taxes $456$

Income tax expense $228$

Net Income $ $228$

CLEAR TRANSMISSIONS COMPANY

Selected Accounts from Comparative Balance Sheets

December $31,2024$ and $2023($$ in thousands$)$

Year Change

$20242023$

Cash $ $123$ $ $120$ $ $3$

Accounts receivable $251262(11)$

Inventory $460470(10)$

Accounts payable $19017416$

Salaries payable $95106(11)$

Interest payable $554015$

Income tax payable $453015$

Required:

Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method.