Tanucci Clothing Store's income statement follows. Tanucci Clothing Store Income Statement For the Year Ended June 30, 2014 Net sales Cost of goods sold: Beginning inventory Net cost of purchases Goods available for sale Ending inventory Cost of goods sold Gross margin Operating expenses: Sales and administrative salaries expense Other sales and administrative expenses Total operating expenses Income before income taxes Income taxes Net income $1,240,000 3,040,000 $4,280,000 1,400,000 $1,112,000 624,000 $4,900,000 2,880,000 $2,020,000 1,736,000 $ 284,000 78,000 $ 206,000 Additional information: (a) other sales and administrative expenses include depreciation expense of $104,000 and amortization expense of $36,000; (b) accrued liabilities for salaries were $24,000 less than the previous year, and prepaid expenses were $40,000 more than the previous year; and (c) during the year accounts receivable (net) increased by $288,000, accounts payable increased by $228,000, and income taxes payable decreased by $14,400. REQUIRED Using the direct method, prepare a schedule of cash flows from operating activities.