Juguete Company's income statement for last year is as follows:

Juguete Company
Income Statement
Sales	$200,000
Less: Cost of goods sold	120,000
Gross margin	$80,000
Less: Operating expenses	50,000
Income before taxes	$30,000
Less: Income taxes	12,000
Net income	$18,000

	Ending balance		Beginning balance
Accounts receivable	$30,000		$20,000
Inventory	58,000		50,000
Prepaid expenses	12,000		18,000
Accumulated depreciation	(70,000)		(60,000)
Accounts payable	54,000		40,000
Accrued liabilities	6,000		10,000
Income taxes payable	8,000		2,000

Required:

Using the direct method, prepare the operating activities section of the statement of cash flows by completing columns A and B of the following table: (A provides the adjustments and B provides the cash amount resulting from the adjustments.)

Amounts to be deducted should be indicated by a minus sign.

	A	B
Sales revenue	$200,000
Adjustments for conversion to cash basis:
Increase in accounts receivable	fill in the blank 1	$fill in the blank 2
Cost of goods sold	$120,000
Adjustments for conversion to cash basis:
Increase in inventory	fill in the blank 3
Increase in accounts payable	fill in the blank 4	fill in the blank 5
Operating expenses	$50,000
Adjustments for conversion to cash basis:
Decrease in prepaid expenses	fill in the blank 6
Decrease in accrued liabilities	fill in the blank 7
Depreciation expense	fill in the blank 8	fill in the blank 9
Income taxes	$12,000
Adjustments for conversion to cash basis:
Increase in income taxes payable	fill in the blank 10	fill in the blank 11
Net cash flows from operating activities		$fill in the blank 12