The income statement for Granville Manufacturing Company is presented below.

Granville Manufacturing Company Income Statement For the year ended December 31, 2019
Sales			$4,199,830
Cost of goods sold			2,787,210
Gross margin			$1,412,620
Operating expenses:
Salaries expense	$831,800
Depreciation expense	246,100
Administrative expense	131,000
Bad debt expense	51,700
Other expenses	43,900		1,304,500
Net income			$ 108,120

The following balance sheet changes occurred during the year:

• Accounts receivable increased by $182,400.
• Inventory increased by $98,725.
• Prepaid expenses decreased by $64,100.
• Accounts payable increased by $43,850.
• Salaries payable increased by $54,900.

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. Use a minus sign to indicate any decreases in cash or cash outflows.

Problem 11-58A (Appendix 11A) Preparing Net Cash Flows from Operating Activities-Direct Method The income statement for Granville Manufacturing Company is presented below. Granville Manufacturing Company Income Statement For the year ended December 31, 2019 $4,199,830 2,787,210 $1,412,620 Sales Cost of goods sold Gross margin Operating expenses: Salaries expense Depreciation expense Administrative expense $831,800 246,100 131,000 51,700 43,900 1,304,500 $ 108,120 Bad debt expense Other expenses Net income The following balance sheet changes occurred during the year: Accounts receivable increased by $182,400 Inventory increased by $98,725. Prepaid expenses decreased by $64,100. Accounts payable increased by $43,850. Salaries payable increased by $54,900. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. Use a minus sign to indicate any decreases in cash or cash outflows. Granville Manufacturing Company Statement of Cash Flows (Partial) Using Direct Method Cash flows from operating activities: Cash collected from customers Cash paid to suppliers Cash paid for operating expenses Net cash provided by operating activities