Jones Company is a merchandiser whose income statement for Year 2 follows: Sales $ 2,350 Cost of goods sold 1,200 Gross margin 1,150 Selling and administrative expenses 300 Income before taxes 850 Income taxes 340 Net income $ 510 The companys selling and administrative expense for Year 2 includes $78 of depreciation expense. Selected balance sheet accounts for Jones at the end of Years 1 and 2 are as follows: Year 2 Year 1 Current Assets Accounts receivable 210 255 Inventory 162 184 Prepaid expenses 42 22 Current Liabilities Accounts payable 100 79 Accrued liabilities 12 21 Income taxes payable 126 70 Required: 1. Using the direct method, convert the companys income statement to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) Jones Company Direct Method of Determining the Net Cash flows from Operating activities Sales $ Adjustments to a cash basis: $ Cost of goods sold Adjustments to a cash basis: Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis: Net cash operating activities