Waterway Corporation had the following 2017 income statement.

Sales revenue		$205,000
Cost of goods sold		115,000
Gross profit		90,000
Operating expenses (includes depreciation of $20,000)		52,000
Net income		$38,000

The following accounts increased during 2017: Accounts Receivable $13,000, Inventory $12,000, Accounts Payable $14,000. Prepare the cash flows from operating activities section of Waterway’s 2017 statement of cash flows using the direct method.