The income statement of Vaughn Company is shown below. Additional information: 1. Accounts receivable decreased $63,000 during the year. 2. Inventory increased $39,000 during the year. 3. Prepaid expenses increased $12,000 during the year. 4. Accounts payable increased $26,000 during the year. 5. Accrued expenses payable increased $6,000 during the year. 6. Administrative expenses include depreciation expense of $20,000. Prepare the operating activities section of the statement of cash flows using the direct method. Prepare the operating activities section of the statement of cash flows using the direct method