Exercise 14-43 Operating Cash Flows, Direct Method The income statement for Piura Merchandising Corporation is as follows: Piura Merchandising Corporation Income Statement at December 31, 20X1 Sales $1500000 Cost of Goods Sold Beginning Inventory $400000 Purchases 800000 Ending Inventory (200000) (1000000) Depreciation expenses (100,000) Amortization of patent (20,000) Wage Expenses (80,000) Insurance expenses (40,000) Income before taxes $260,000 Income taxes (all current) (104,000) Net Income 156,000 Other information is as follows: Accounts payable decreased by $20,000 during the year. Accounts receivables increased by $20,000 All wage was paid at the beginning of the year, at the end oif the year, wages payable has a balance of $12,000 Prepaid insurance increased by $24,000 during the year. Prepare a schedule of operating cash flows using the direct method.