Determining Operating Cash Flows-Direct Method Guccii Corporation's recent comparative balance sheet and income statement follow: Balance Sheets, December 31 2019 2020 Assets Cash and cash equivalents $60,000 $86,000 Investments, short-term 0 12,000 Accounts receivable, net 68,000 84,000 Merchandise inventory 40,000 60,000 Investments, long-term 40,000 Plant assets, net 240,000 236,000 Patents 12,000 10,800 Other assets 28,000 28,000 Total assets $448,000 $556,800 Liabilities and Stockholders' Equity Accounts payable $48,000 $88,000 Accrued expenses payable 0 34,800 Bonds payable 160,000 80,000 Common stock, par $10 140,000 160,000 Additional paid-in capital 0 18,000 Retained earnings 100,000 176,000 Total liabilities and stockholders' equity $448,000 $556,800 Income Statement, For Year Ended December 31 Sales revenue Cost of goods sold Depreciation expense Patent amortization 2020 $416,000 (220,000) (32,000) (1,200) (70,800) $92,000 Other operating expenses Net income Additional information for 2020 1. Retired bonds paying $80,000 cash. 2. Bought long-term debt investment in securities, $40,000 cash. 3. Purchased a plant asset, $28,000 cash. 4. Purchased short-term investment in securities (not held in a trading account), $12,000 cash. 5. Declared and paid cash dividends, $16,000. 6. Issued capital stock, 2,000 shares at $19 cash per share. Required Prepare the operating activities section of the statement of cash flows, using the direct method. Assume there is no bad debt expense. Note: Use negative signs with amounts for cash outflows. Cash Flows from Operating Activities Collections from customers $ 400,000 Payments to suppliers 280,000 x Other operating expenses 0 X Net cash provided (used) by operating activities $ OX