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The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Income Statement Sales
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 $ 57,600 Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income 25,500 2,900 9,900 5,400 2,350 2,250 1,850 $ 7,450 Selected Balance Sheet Accounts Ending Balances Beginning Balances Accounts Receivable $ 580 $ 620 Inventory 900 725 Accounts Payable 440 500 Prepaid Rent 33 24 Prepaid Insurance 29 36 Salaries and Wages Payable 82 51 28 19 Utilities Payable Required: 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.)
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