Super Sales Inc. shows the following information in its accounting records at yearend:

Sales revenue $\$ 890,000$

Interest revenue. 12,000 Cost of goods sold. ..... 425,000 Wages expense ..... 225,000 Depreciation expense ..... 50,000 Other (cash) operating expenses ..... 84,000 Dividends declared ..... 40,000 Selected balance sheet data are as follows:

1. Using the direct method, compute the net cash flows provided by (used in) operating activities for Super Sales Inc.
2. Interpretive Question: Explain the main differences between the net amount of cash flows from operations and net income (loss).

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Accounts receivable (net). Interest receivable.. Inventory... Accounts payable Wages payable. Dividends payable. Beginning of Year $ 55,000 End of Year $ 78,000 10,000 12,000 225,000 220,000 42,000 35.000 20.000 25,000 35,000 40,000