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. Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income Selected Balance Sheet Accounts Inventory Accounts Receivable Accounts Payable Salaries and Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance Current Year $ 86 390 210 33 22 4 13 $ 2,160 920 220 520 270 82 62 52 $34 Prior Year $62 470 230 22 64 11 6 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'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 Prepald 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 actlvities 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 indicoted with a minus sign.)