$\backslash$table$[[$PETOSKEY TECHNOLOGIES$],[$Selected Balance Sheet Data,,$],[$December $31,2024,$ compared to December $31,2023,,],[$Decrease in accounts receivable,$6,900,],[$Increase in inventory,$13,900,],[$Decrease in prepaid rent,$9,900,],[$Increase in salaries payable,$5,900,],[$Decrease in accounts payable,$8,900,],[$Increase in income tax payable,$23,600,]]$

Required:

Prepare the operating activities section of the statement of cash flows for Petoskey Technologies using the direct method. $($Amounts to be deducted should be indicated with a minus sign.$)$

$\backslash$table$[[$PETOSKEY TECHNOLOGIES,$],[$Statement of Cash Flows,,$],[$For the Year Ended December $31,2024,,],[,,],[,,],[,,],[,,],[,,],[$Net cash flows from operating activities,,$]]$Portions of the financial statements for Petoskey Technologies are provided below.

PETOSKEY TECHNOLOGIES

Income Statement

For the Year Ended December $31,2024$

Net sales $$395,000$

Expenses:

Cost of goods sold $$230,000$

Operating expenses $69,000$

Depreciation expense $16,900$

Income tax expense $26,500$

Total expenses $342,400$

Net income $ $52,600$

PETOSKEY TECHNOLOGIES

Selected Balance Sheet Data

December $31,2024,$ compared to December $31,2023$

Decrease in accounts receivable $ $6,900$

Increase in inventory $13,900$

Decrease in prepaid rent $9,900$

Increase in salaries payable $5,900$

Decrease in accounts payable $8,900$

Increase in income tax payable $23,600$

Required:

Prepare the operating activities section of the statement of cash flows for Petoskey Technologies using the direct method. $($Amounts to be deducted should be indicated with a minus sign.$)$