Presented below is the latest income statement of Mandolin Ltd.:

Sales $ 570,000

Cost of goods sold 337,500

Gross profit $ 232,500

Operating expenses 127,500

Income before income taxes 105,000

Income taxes 42,000

Net income $ 63,000

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

Item	This year	Last year	Change
Cash	32,000	20,000
Accounts Receivables (Net)	26,000	16,000
Inventories	29,400	10,000
Salaries Payable	6,000	0
Accounts Payable	15,600	6,600
Income Taxes	3,500	500

Mandolin Ltd. also reports that depreciation expense for the year was $ 20,550 and that the deferred tax liability account increased $ 3,900.

Instructions

Prepare a schedule calculating the net cash flow from operating activities that would be shown on a statement of cash flows using the direct method.