QUESTION 21 Presented below is the income statement of Culpepper Inc.: Sales Cost of goods sold Gross profit Operating expenses (including depreciation of $16,700) Income before income taxes Income taxes Net income S380 000 225,000 $155,000 85,000 70,000 28,000 $ 42,000 In addition, the following infornation related to the year end balances in the working capital accounts is presented: Cash Trade Accounts Receivable Inventory Salaries payable (operating expenses) Trade Accounts Payable Income Taxes Payable Deferred Tax Payable 2018 2017 $ 72,000 $60,000 165,000 50,000 20,600 40,000 11,000 19,000 42,000 30,000 15,000 18,000 122,600 20,000 Instructions: Prepare the cash flows from operating activities using the direct method