Note: Do not use a tergabve sign with ary of your antavers. Preparing Operating Activities Section of the Statement of Cash Flows-Direct Method The income statement and comparative balance sheets for Mug Shots, Inc. (a photography studio) are presented below. Note: Do not use a tergabve sign with ary of your antavers. Preparing Operating Activities Section of the Statement of Cash Flows-Direct Method The income statement and comparative balance sheets for Mug Shots, Inc. (a photography studio) are presented below