For the year ended June 30th 2012, Atlantic corporation net income was $7,400. Its depreciation expense was $2,000. During the year, its accounts receivable increased by 4,400. Inventories increased by $7,000. Prepaid rent decreased by $1,400. Accounts payable increased by $14,000, salaries payable increased by $1,000 and income taxes payable decreased by $600. The company also had a gain on the sale of investments of $1,800. Use the direct method to prepare a schedule of cash flows from operating activities.