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An income statement for the first year of operations for Patti Company appears below: $390,000 39,000 24,050 Sales Dividend revenue Interest revenue Cost of goods sold Salary expense Depreciation expense Income tax expense (208,000) (26,000) (70,200) (109,200) 39,650 Net income Additional information a. Accounts payable, end of year, $13,000. b. Salaries payable, end of year, $8,450. c. Inventories, end of year, $26,000. d. Accounts receivable, end of year, $32,500 Required: Use the direct approach to calculate the cash provided (used) by operating activities for Patti Company. (Net cash outflows and amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. Cash Collections From Customers: Sales 390,000 Less: Accounts receivable, end of year (2,600) 387,400 Cash collections of dividends 39,000 Cash collections of interest 24,050 Cash payments to merchandise suppliers: Cost of goods sold 208,000 Less: Accounts payable, end of year (13,000) Add: Inventories, end of year 26,000 (221,000) Cash payments for salaries: Salary expense 26,000 Less: Salaries payable, end of year (8,450) (17,550) (109,200) Cash payments for taxes 102,700 Net cash provided by operating activities