Following are the income statement and some additional information for ABC Goods.

Net sales 10,000

COGS (1,500)

Gross margin 8,500

Operating expenses 2,000

Depreciation Exp 900 (2,900)

Income before taxes 5,600

Income taxes (1,600)

Net income 4,000

All sales were on credit and accounts receivable decreased by $900 in 2013 compared to 2012. Merchandise purchases were on credit with a decrease in accounts payable of $700 during the year. Ending inventory was $500 larger than beginning inventory. Income taxes payable increased $300 during the year. All operating expenses were paid for in cash.

Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.