Use the following income statement and information about changes in non-cash current assets and current liabilities to present the cash flows from operating activities using the direct method: (List any deduction in cash and cash outflows as negative amounts.)

Opal Resources Corp.

Income Statement For Year Ended December 31, 2020

Sales $484,500

Cost of goods sold 237,400

Gross profit from sales $247,100

Operating expenses:

Salaries expense$ 65,976

Depreciation expense 11,510

Rent expense 9,750

Amortization expense, patents1,430

Utilities expense 4,900

Total operating expenses 93,566

Gain on sale of equipment 1,910

Profit from operations $155,444

Income taxes 3,000

Profit $152,444

Changes in current asset and current liability accounts during the year were as follows:

Accounts receivable$10,600increase

Merchandise inventory7,000increase

Accounts payable3,400decrease

Salaries payable1,000decrease

Statement of cash flows Opal Resources Corp For Year Ended December 31, 2020 here

Analysis Component:Use the information above to present the cash flows from operating activities using the indirect method.