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Portions of the financial statements for Avatar Technologies are provided below. AVATAR TECHNOLOGIES Income Statement For the Year Ended December 3 1 , 2 0

Portions of the financial statements for Avatar Technologies are provided below.
AVATAR TECHNOLOGIES
Income Statement
For the Year Ended December 31,2024
Net sales $295,000
Expenses:
Cost of goods sold $175,000
Operating expenses 50,000
Depreciation expense 15,000
Income tax expense 17,000
Total expenses 257,000
Net income $ 38,000
AVATAR TECHNOLOGIES
Selected Balance Sheet Data
December 31,2024, compared to December 31,2023
Decrease in accounts receivable $ 5,000
Increase in inventory 12,000
Decrease in prepaid rent 8,000
Increase in salaries payable 4,000
Decrease in accounts payable 7,000
Increase in income tax payable 16,000
Required:
Prepare the operating activities section of the statement of cash flows for Avatar Technologies using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

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