Instructions Tidwell Company has provided the following partial comparative balance sheets and the income statement for 20x2. Tidwell Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20x1 20X2 Current assets: Accounts receivable $353,000.00 $277,500.00 Inventories 130,000.00 154,000.00 Current liabilities: 6 Accounts payable 301,000.00 239,000.00 Instructions Tidwell Company Income Statement For the Year Ended December 31, 20X2 Revenues $1,200,000.00 Gain on sale of equipment 48,000.00 Cost of goods sold (652,000.00) Depreciation expense (124,000.00) (21,000.00) Interest expense Net income $451,000.00 Required: Compute operating cash flows using the direct method. Instructions Cash Flows from Operating Activities - Direct Method Tidwell Company Score: 43763 Cash Flows from Operating Activities, Direct Method For the Year Ended December 31, 20X2 Income Statement Adjustments Cash Flows Revenues $1,200,000.00 $1,275,500.00 $75,500.00 (48,000.00) Gain on sale of equipment 48,000.00 0.00 Cost of goods sold 24,000.00 0.00 Depreciation expense (62,000.00) (738,000.00) (652,000.00 (124,000.00) (21,000.00) $451,000.00 Interest expense 0.00 Net income Net cash from operating activities $516,500.00