Wildhorse Ltd. reported the following for the fiscal year 2017:

WILDHORSELTD.

Income Statement

Year Ended September 30, 2017Sales

$570,000

Cost of goods sold

325,000

Gross profit

245,000

Operating expenses

$ 96,000

Depreciation expense

21,000

Gain on sale of land

(31,000

)86,000Profit before income tax159,000

Income tax expense

39,750

Profit

$119,250

Additional information:

1.Accounts receivable decreased by $15,000 during the year.

2.Inventory increased by $6,500 during the year.

3.Prepaid expenses decreased by $4,500 during the year.

4.Accounts payable to suppliers increased by $10,000 during the year.

5.Accrued expenses payable increased by $4,000 during the year.

6.Income tax payable decreased by $5,800 during the year.

Prepare the operating activities section of the cash flow statement using the direct method.