Freeport Corporation's income statement for last year appears below:
$Freeport Corporation's income statement for last year appears below: The beginning and ending balances for last year are available for the following selected accounts (the company did not dispose of any property,plant,and equipment during the year): \begin{array}{lrr} &\text { Ending } & \text { Beginning } \\ &\text { Balance } & \text { Balance } \\ \text {Accounts receivable }&\$ 32,000 & \$ 40,000 \\ \text {Inventory. }&\$ 60,000 & \$ 50,000 \\ \text { Prepaid expenses}&\$ 12,000 & \$ 8,000 \\ \text {Accumulated depreciation }&\$ 40,000 & \$ 30,000 \\ \text { Accounts payable}&\$ 30,000 & \$ 45,000 \\ \text { Accrued liabilities.}&\$ 16,000 & \$ 10,000 \\ \text {Income taxes pavable }&\$ 2,000 & \$ 5,000 \end{array} Required: Using the direct method,prepare in good form the operating activities section of the statement of cash flows.$ The beginning and ending balances for last year are available for the following selected accounts (the company did not dispose of any property,plant,and equipment during the year):

\begin{array}{lrr}&\text { Ending } & \text { Beginning } \\&\text { Balance } & \text { Balance } \\\text {Accounts receivable }&\$ 32,000 & \$ 40,000 \\\text {Inventory. }&\$ 60,000 & \$ 50,000 \\\text { Prepaid expenses}&\$ 12,000 & \$ 8,000 \\\text {Accumulated depreciation }&\$ 40,000 & \$ 30,000 \\\text { Accounts payable}&\$ 30,000 & \$ 45,000 \\\text { Accrued liabilities.}&\$ 16,000 & \$ 10,000 \\\text {Income taxes pavable }&\$ 2,000 & \$ 5,000\end{array}

Required:
Using the direct method,prepare in good form the operating activities section of the statement of cash flows.

Kuma,IncHad Cost of Goods Sold of $106,000 for the Just

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