The income statement of Packer Inc. for the year ended December 31, 2018, reported the following condensed information: Sales S785,000 Cost of goods sold 200 000 Gross profit 585,000 Operating expenses 340 000 Income from operations 245,000 Income tax expense 61 250 Net income $183750 Packer's statement of financial position contained the following comparative data at December 31 2018 2017 Accounts receivable $52,500 $45,690 Inventory 25.690 45.000 Prepaid expenses 12,000 13,500 Accounts payable 34,690 41.000 Accrued liabilities 4,500 5.800 Income taxes payable 5,500 3,690 The corporation has no depreciable assets. Accounts payable pertain to inventory purchases. Instructions Using the direct method, prepare the operating activities of the statement of cash flows for the year ended December 31, 2018