prepaid the net cash flow from operating activities section of the statement of cash flow for 2016, using the direct method

1. The Percy's Landing Co. reported the following condense income statement for 2016: Percy's Landing Co. Condensed Income Statement For the Year Ended December 31, 2016 $305,000 150,000 $155,000 Sales Cost of goods sold Gross profit Operating expenses: Depreciation. Insurance expense Salaries expense Income before taxes Income taxes Net income $42,000 5,000 80,000 127,000 $ 28,000 6.000 $ 22.000 Also, during 2016, the company's current assets and current liabilities changed as follows: Increase (Decrease] Cash Accounts receivable Inventory Prepaid insurance Accounts payable (purchases) Salaries payable Income taxes payable $49,500 11.000 17 500 (3,500) 35.000 2,500 (1,500) Required: Prepare the Net Cash Flow from Operating Activities section of the statement of cash flows for 2016, using the direct method