Sheridan Ltd. reported the following for the fiscal year 2021: SHERIDAN LTD. Income Statement Year Ended September 30, 2021 Sales $566,000 Cost of goods sold 321,000 Gross profit 245,000 Operating expenses $ 92,000 Depreciation expense 17,000 Gain on sale of land (27,000 ) 82,000 Profit before income tax 163,000 Income tax expense 40,750 Profit $122,250 Additional information:

1. Accounts receivable decreased by $14,600 during the year. 2. Inventory increased by $6,100 during the year. 3. Prepaid expenses decreased by $4,100 during the year. 4. Accounts payable to suppliers increased by $9,600 during the year. 5. Accrued expenses payable increased by $3,600 during the year. 6. Income tax payable decreased by $5,400 during the year.

Prepare the operating activities section of the cash flow statement using the direct method