Presented below is the income statement of Cowan, Inc:

In addition, the following information related to net changes in working capital is presented:

$\backslash$table$[[$Cash$,$Debit,Credit$],[$Accounts receivable,$$12,000,],[$Inventories$,25,000,],[$Salaries payable $($operating expenses$),8,000,],[$Accounts payable,$$19,400,],[$Income taxes payable,$3,000,14,000]]$

The company also indicates that depreciation expense for the year was $$16,700$ and that the deferred tax liability account increased $$2,600.$

COWAN, INC.

Statement of Cash Flows $($Partial$)($Indirect Method$)$

Cash Flows from Operating Activities

Adjustments to reconcile net income to

Prepare a schedule computing the net cash flow from operating activities by using the direct method that would be shown on a statement of cash flows. $($Show amounts that decrease cash flow with either a negative sign e$.$g$.-15,000$ or in parenthesis eg$.(15,000).)$

COWAN, INC.

Statement of Cash Flows $($Partial$)$ Direct Method

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