sutements of Financial Position and Cash Flows and the Annual Report 279 BE6-24. Statement of Cash Flows, Direct Method. Identify and compute the cash flow related to each item on the following income statement. Use the direct method. = a. Accounts Receivable b. Prepaid Insurance c. Inventory d. Accounts Payable e. Taxes Payable Balance Sheet Accounts Income Statement Accounts Beginning Ending Balance Balance $1,035 - $1,123Pp Sales $35,678 400 514 Insurance Expense 1,346 . 5,461 6,723 Cost of Goods Sold - 34,762 4,312 5,1259737 3,009 2,4006 Tax Expense 45,098