Freeport Corporation's Income Statement for Last Year Appears Below:

Essay

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.