Objective: To prepare the cash flows from operating activities section of a statement of cash flows using the direct method

The following information is available for Gene's Clothing Store for 20X2:

Sales	$280,000
Cost of Goods Sold	123,000
Selling Expenses	20,000
General Expenses	34,160
Depreciation Expense	1,450
Interest Expense	5,425
Income Tax	19,455

	Balance, December 31, 20X2	Balance, January 1, 20X2
Merchandise Inventory	$14,360	$24,350
Accounts Receivable	13,578	11,435
Prepaid Rent	2,500	-0-
Accounts Payable	31,450	21,422
Income Tax Payable	1,890	2,400

Directions: Using the different method, prepare the Cash Flows from Operating Activities section of the statement of cash flows.

Check Figure