Presented below is the income statement of Debra, Inc.: Sales revenue Cost of goods sold Gross profit Operating expenses Income before income taxes Income taxes Net income $380,000 222,000 $158,000 94,100 63,900 22,900 $ 41,000 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $11,800 Accounts receivable 24,300 Inventories $19,700 Salaries payable (operating expenses) 8,400 Accounts payable 14,100 Income taxes payable 3,100 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,900. Debra, Inc. Statement of Cash Flows (Partial) (Indirect Method) 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. Debra, Inc. Statement of Cash Flows (Partial) Direct Method