Following are the income statement and some additional information for Carolina Consulting Company.

Carolina Consulting Company
Income Statement
For the Year Ended December 31, 2016
Net sales			$	16,000
Cost of goods sold				(2,700	)
Gross margin				13,300
Operating expenses	$	3,200
Depreciation expense		1,500		(4,700	)
Income before taxes				8,600
Income taxes				(2,800	)
Net income			$	5,800

All sales were on credit and accounts receivable decreased by $1,020 in 2016 compared to 2015. Merchandise purchases were on credit with a decrease in accounts payable of $820 during the year. Ending inventory was $620 larger than beginning inventory. Income taxes payable increased $420 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.