Waterfall Travel Services Balance Sheets As of December 31 Assets | Cash Accounts receivable Inventories Prepaid insurance Land Equipment Accum. Depreciation Total Liabilities and Stockholders' Equity Accounts payable Wages payable Interest payable Income taxes payable Notes payable (long-term) Total liabilities Common Stock Retained Earnings Total stockholders' equity Total liabilities and stockholders' equity 2012 $44,000 77,000 58,000 9,000 106,000 77,000 (20,000) $351,000 2011 $15,000 86,000 19,000 11,000 119,000 58.000 (14,000) $294,000 $26,000 30,000 16,000 12,000 94,000 $178,000 136,000 37,000 $173,000 $351,000 $31,000 21,000 14,000 10,000 85.000 $161,000 123,000 10,000 $133,000 $294,000 $200,000 80,000 120,000 Below is the income statement for Waterfall Travel Service: Waterfall Travel Service Income Statement Year Ended December 31, 2012 Net sales COGS Gross Profit Operating Expenses Wages Expense Insurance Expense Depreciation Expense Total operating Expenses Operating income Interest Expense Loss on sale of land Income before income taxes Income tax expense Net Income 40,000 6,000 6,000 52,000 68,000 (15,800) (3,300) 48,900 9,900 $39,000 Using the income statement above and the balance sheet presented earlier, prepare the operating activities section of the Statement of Cash Flows using the DIRECT METHOD. Waterfall Travel Services, Inc. Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Net cash provided by (used for) operating activities