Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended

December $31$ are presented below.

TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent $($and subtracted from net income as Rent Expense$)$ was

more than the amount paid for rent in cash during the current year.

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. TIP: Convert the cost

of goods sold to cash paid to suppliers by adding the increase in inventory and adding the decrease in accounts payable. $($Amounts to

be deducted should be indicated with a minus sign.$)$

HAMBURGER HEAVEN

Statement of Cash Flows $($Partial$)$

For the Year Ended December $31$