The following financial statements were provided by Roberts Company:

Roberts Company

Balance Sheets

At September 30, 20X1 and 20X2

1		20X1	20X2
2	Assets:
3	Cash	$23,000.00	$7,000.00
4	Accounts receivable	7,600.00	9,600.00
5	Inventory	20,800.00	18,000.00
6	Plant and equipment	40,000.00	60,000.00
7	Accumulated depreciation	(10,000.00)	(16,000.00)
8	Total assets	$81,400.00	$78,600.00
9	Liabilities and equity:
10	Accounts payable	$4,800.00	$3,200.00
11	Wages payable	1,200.00	800.00
12	Common stock	50,000.00	50,000.00
13	Retained earnings	25,400.00	24,600.00
14	Total liabilities and equity	$81,400.00	$78,600.00

Roberts Company

Income Statement

For the Year ended September 30, 20X2

1	Sales		$40,000.00
2	Cost of goods sold
3	Beginning inventory	$20,800.00
4	Purchases	26,000.00
5	Ending inventory	(18,000.00)	(28,800.00)
6	Wages expense		(4,000.00)
7	Advertising		(2,000.00)
8	Depreciation expense		(6,000.00)
9	Net income (loss)		$(800.00)

At the end of 20X2, Roberts purchased some additional equipment for $20,000.

	Required:
	Calculate operating cash flows using the direct method.

Prepare a schedule of operating cash flows using the direct method. (Note: Begin by entering the applicable income statement amounts. In the Adjustments column, if an account has more than one adjustment, enter the total effect of all adjustments in the applicable cell. Use a minus sign to indicate a negative adjustment or a negative cash outflow. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. If an amount is zero, enter "0".)

Roberts Company

Operating Cash Flows

For the Year Ended September 30, 20X2

1		Income Statement	Adjustments	Cash Flows
2	Cash flows from operating activities:
3
4
5
6
7
8

Amount Descriptions:

Refer to the list below for the exact wording of an amount description within your income statement.

Amount Descriptions
Accounts payable
Accounts receivable
Advertising
Common stock
Cost of goods sold
Depreciation expense
Net cash from operating activities
Net income
Net loss
Plant and equipment
Retained earnings
Sales
Wages expense