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The Income statement and selected balance sheet Information for Direct Products Company for the year ended December 31 are presented below. $49,6ee Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income 21,500 2,100 9, 100 4,600 1,95 1,85e 1,450 $ 7,50 Selected Balance Sheet Accounts Beginning Balances $ 590 765 Accounts Receivable Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable Ending Balances $ 565 980 425 27 26 98 22 478 21 30 59 16 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus slgn.) Answer is complete but not entirely correct. DIRECT PRODUCTS COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities: IS Cash Receipts from Customers 49,035 Cash Payments to Suppliers 21.715 X Cash Payments for Salaries and Wages 9,139 Cash Payments for Rent 4,848 X Cash Payments for Insurance 1.650 X Cash Payments for Interest 0 X Cash Payments for Utilities 6 Net Cash Provided by Operating Activities IS 86,493

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