The Income statement and selected balance sheet Information for Direct Products Company for the year ended December 31 are presented below. Income Statement Sales Revenue $ 48,600 Expenses: Cost of Goods Sold Depreciation Expense Salaries and wages Expense 21,000 2,000 9,000 Rent Expense Insurance Expense 4,500 1,900 Interest Expense Utilities Expense Net Income 1,800 1,400 $ 7,000 Selected Balance Sheet Accounts Ending Balances Accounts Receivable Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable Required: Beginning Balances $ 580 $ 560 990 770 420 460 25 20 25 28 100 60 20 15 Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) DIRECT PRODUCTS COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense Changes in Current Assets and Current Liabilities Increase in Salaries and Wages Payable Increase in Prepaid Rent Increase in Inventory Decrease in Prepaid Insurance Increase in Utilities Payable S 7,000 2.000 9,000 (4,505) Net Cash Provided by Operating Activities S 13,495