The financial statements of Deutsch Company are provided below:

Deutsch, Inc.

Comparative Balance Sheets

December $31,$

$20222021$

Assets:

Current Assets:

Cash $ $1,380,000$ $$1,080,000$

Accounts Receivable $($net$)3,120,0002,160,000$

Inventory $3,900,0002,520,000$

Prepaid Expenses $702,000630,000$

Total Current Assets $9,102,0006,390,000$

Long$-$Term Investments $450,000$

Plant Assets:

Property, Plant & Equipment $4,380,0002,880,000$

Accumulated Depreciation $(900,000)(540,000)$

Total Plant Assets $3,480,0002,340,000$

Total Assets $$13,032,000$ $$8,730,000$

Equities:

Current Liabilities:

Accounts Payable $ $2,550,000$ $$2,190,000$

Accrued Expenses $618,000564,000$

Total Current Liabilities $3,168,0002,754,000$

Long$-$Term Notes Payable $1,650,000$

Stockholders' Equity:

Common Stock $6,000,0004,800,000$

Retained Earnings $2,214,0001,176,000$

Total Equities $$13,032,000$ $$8,730,000$

Deutsch, Inc.

Income Statement

December $31,2022$

Net Credit Sales $$14,040,000$

Cost of Goods Sold $7,830,000$

Gross Profit $6,210,000$

Operating Expenses $5,072,000$

Income before tax $1,138,000$

Income tax expense $100,000$

Net Income $$1,038,000$

Instructions:

Prepare the net cash provided $($used$)$ by operating activities using the direct method. Show all calculations!