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Scroll down to complete all parts of this task. Steppenwolf Co. uses the direct method to prepare its statement of cash flows. Steppenwolf's financial statements

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Steppenwolf Co. uses the direct method to prepare its statement of cash flows. Steppenwolf's financial statements are as follows:

Comparative Balance Sheet
12/31/Year 2 12/31/Year 1
Cash $10,000 $20,500
Accounts receivable 17,000 13,000
Inventory 25,000 20,000
Supplies 900 500
Prepaid insurance 800 2,000
Equipment, net of accumulated depreciation 36,000 40,000
Total assets $89,700 $96,000
Accounts payable 25,000 31,000
Salaries payable 13,000 16,000
Common stock, $10 par value 25,000 25,000
Additional paid-in capital 14,000 14,000
Retained earnings 12,700 10,000
Total liabilities and stockholders' equity $89,700 $96,000
Income Statement
For Year Ended 12/31/Year 2
Sales $50,000
Cost of goods sold 31,000
Gross profit 19,000
Salary expense 10,000
Supplies expense 1,000
Insurance expense 1,300
Depreciation expense 4,000
Net income $ 2,700

Using the direct method, prepare the operating activities section of the statement of cash flows for Steppenwolf for the year ended December 31, Year 2. Enter the appropriate amounts in the designated cells below. Indicate negative numbers using a leading minus (-) sign.

Cash flows from operating activities

Amount

1. Cash received from customers
2. Cash paid to purchase inventory
3. Cash wages paid to employees
4. Cash paid for supplies
5. Cash paid for insurance
6. Net cash flow from operating activities

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