Determining Operating Cash Flows-Direct Method Adjusted trial balances for Garboz Company, an industrial recycler, at December 31 of the current and prior year follow. Debits, December 31 Current Year Prior Year Cash $14,000 $12,800 Accounts receivable 13,200 12,000 Inventory 12,400 18,800 Property, plant, and equipment 40,000 38,000 Discount on bonds payable 1,800 2,000 Cost of goods sold 100,000 152,000 Selling expenses 56,600 68,800 General and administrative expenses 54,800 60,520 Interest expense 1,720 1,040 Income tax expense 8,160 24,480 Total debits $302,680 $390,440 Credits, December 31 Current Year Prior Year Allowance for doubtful accounts $ 520 $ 440 Accumulated depreciation 6,600 6,000 Trade accounts payable 10,000 7,000 Income taxes payable 8,400 10,840 Deferred income tax liability 2,120 1,840 Callable bonds payable, 8% 18,000 8,000 Common stock 20,000 16,000 Additional paid-in capital 3,640 3,000 Retained earnings 17,880 25,840 Sales Total credits 215,520 311,480 $302,680 $390,440