The Following Selected Financial Information Is for Javier Inc $\quad$

Essay

The following selected financial information is for Javier Inc.
$\begin{array}{c}\text {Javier Inc.}\\\text {Income Statement}\\\text {For the Year Ended December 31, 2017}\\\\\begin{array}{lr}\text { Sales } & \$ 3,000,000 \\\text { Cost of goods sold } & 2,400,000 \\ \text { Gross margin } & 600,000 \\\text { Selling and administrative expenses } & 324,000 \\\text { Depreciation expense } & 126,000 \\\text { Operating income } & 150,000 \\\text { Gain on sale of equipment } & 9,000 \\\text { Income before taxes } & 159,000 \\\text { Income tax expense } & 47,700 \\\text { Net income } & \$ 111,300\end{array}\end{array}$

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { December } 31$$\begin{array}{lrr}&2017&2016\\\text { Current Assets } &\\ \text { Cash } & \$ 60,000 & \$ 42,000 \\\text { Accounts receivable } & 30,000 & 18,000 \\\text { Merchandise inventory } &75,000 & 90,000 \\\text { Prepaid expenses } & 12,000 & 10,200 \\& & \\\text { Current Liabilities } \\\text { Accounts payable }& 27,000 & 21,000\\\text { Income tax payable } & 7,200 & 4,800\end{array}$
Using the direct method,prepare the operating activities section of the statement of cash flows for Javier Inc.for the year ended December 31,2017.