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.

Use the information in these financial statements and the frameworks in Exhibits $4\mathrm{.}5$ and $4\mathrm{.}6$ to compute Mug Shots' cash flow from operating activities using the direct method.

Note: Do not use a negative sign with any of your answers.Use the information in these financial statements and the frameworks in Exhibits $4\mathrm{.}5$ and $4\mathrm{.}6$ to compute Mug Shots' cash flow from operating activities using the direct method.

Note: Do not use a negative sign with any of your answers.