Presented below is the income statement of ABC Ltd. for the year ending December 31, 2020:

Sales $400,000

Cost of goods sold ( 240,000)

Gross profit $160,000

Operating expenses ( 100,000)

Income before income taxes 60,000

Income taxes ( 21,000)

Net income $ 39,000

You have correctly prepared the following Cash flows from operating activities using the indirect method:

ABC. Statement of Cash Flows (2020 - Partial)

(Indirect Method)

Cash flows from operating activities:

Net income $39,000

Adjustments to reconcile net income to cash provided by operating activities:

Decrease in trade accounts receivable $10,000

Increase in inventories (20,000)

Decrease in salaries payable (operating expenses) (7,000)

Decrease in trade accounts payable (8,000)

Increase in income taxes payable 4,000

Amortization expense 10,500

Increase in deferred income tax liability 2,000 (8,500)

Net cash provided by operating activities $30,500

Prepare the net cash flow from operating activities that would be on the 2020 Statement of Cash Flows for ABC Ltd. using the direct method.