The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are as follows:

Income Statement
Sales Revenue	$	57,500
Expenses:
Cost of Goods Sold		23,000
Depreciation Expense		4,500
Salaries Expense		13,150
Rent Expense		4,500
Insurance Expense		2,100
Interest Expense		4,500
Utilities Expense		2,400
Net Income	$	3,350

Selected Balance Sheet Accounts
	Ending Balances			Beginning Balances
Accounts Receivable	$	525		$	665
Merchandise Inventory		1,330			1,105
Prepaid Rent		90			89
Prepaid Insurance		25			36
Accounts Payable		820			865
Salaries Payable		179			115
Utilities Payable		50			24

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 by a minus sign.) Answer boxes with a (~~~~~~).

Direct Products Company
Statement of Cash Flow (Partial)
For The Year Ended December 31
Cash Flows from operation activities
~~~~Net Income or Net Loss~~~~		~~~~
Adjustments to reconcile net income to net cash provided by operating activities
1~~~~~~~~~See below table for list of possible answers	~~~~~~ Enter a Number amount
2~~~~~~~~~	~~~~~~
3~~~~~~~~~	~~~~~~
4~~~~~~~~~	~~~~~~
5~~~~~~~~~	~~~~~~
6~~~~~~~~~	~~~~~~
7~~~~~~~~~	~~~~~~
8~~~~~~~~~	~~~~~~
9~~~~~~~~~	~~~~~~
10~~~~~~~~~	~~~~~~
Net Cash Provided (used) by operating activities

Possible answers:

• Decrease in accounts payable
• Decrease in accounts receivable
• Decrease in merchandise inventory
• Decrease in prepaid insurance
• Decrease in prepaid rent
• Decrease in salaries payable
• Decrease in utilities payable
• Depreciation expense
• Increase in accounts payable
• Increase in accounts receivable
• Increase in merchandise inventory
• Increase in prepaid insurance
• Increase in prepaid rent
• Increase in salaries payable
• Increase in utilities payable