Rundle Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Rundles Year 2 and Year 1 year-end balance sheets:

Account Title	Year 2			Year 1
Accounts receivable	$	22,500		$	28,700
Merchandise inventory		57,800			49,600
Prepaid insurance		18,000			25,000
Accounts payable		24,100			17,000
Salaries payable		4,950			4,200
Unearned service revenue		1,000			2,750

The Year 2 income statement is shown below:

Income Statement
Sales	$	619,000
Cost of goods sold		(380,000	)
Gross margin		239,000
Service revenue		5,500
Insurance expense		(38,000	)
Salaries expense		(146,000	)
Depreciation expense		(5,000	)
Operating income		55,500
Gain on sale of equipment		4,000
Net income	$	59,500

Required

1. Prepare the operating activities section of the statement of cash flows using the direct method.

Required A Required B Prepare the operating activities section of the statement of cash flows using the direct method. (C indicated with minus sign.) RUNDLE BRANDS, INC. Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash collections from customers for sales Cash collections from customers for services Cash payments for Net cash flow from operating activities $ $ 0