Cash flows from operating activities; presented below is the income statement of Angola, Inc.
Sales ................ $324,000
Cost of goods sold .........$214,000
Gross profit ............$110,000
Operating expenses .........$67,000
Income before income taxes ......$43,000
Income taxes ...........$17,200
Net income ............ $25,800
In addition, the following information related to net changes in working capital is presented.
Debit Credit
Cash ...............$10,600
Accounts receivable .........$2,400
Inventories ............$3,600
Salaries payable (operating expenses) ...$12,000
Accounts payable ..........$15,000
Income taxes payable ........$1,400
Depreciation expense for the year was ...$14,700
Deferred tax liability account increased .$1,800
Required:
Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows-(b) using the direct method.