Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:

End Beginning
Cash 62,000 73,000
Accounts Receivable(net) 75,000 60,000
Inventories 54,000 47,000
Accounts Payable
(merchandise creditors) 43,000 37,000
Salaries payable 2,800 3,800
Sales (on account) 210,000
Cost of merchandise sold 70,000
Operating expenses other than
Deprecation 67,000

Use the direct method to prepare the cash flows from operating activities section of the statement of cash flows.

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