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Firefly's Luggage Company provided the following balance sheet and income statement for the current year. |(Click the icon to view the balance sheets.) : (Click the icon to view the income statement.) Prepare the operating activities section of the cash flow statement using the direct method. Assume accrued expenses relate to selling, general and administrative expenses. (Assume that all investment income was received in cash. Use a minus sign or parentheses for any cash outflows and/or net cash used by operating activities. If an input field is not used in the statement, leave the field empty; do not select a label or enter a zero.) Firefly's Luggage Company Partial Statement of Cash Flow (Direct Method) For the Year Ended December 31 Operating Activities: Net Cash Provided (Used) by Operating Activities - Balance Sheet Firefly's Luggage Company Balance Sheets At December 31 Assets Ending Beginning Current Assets Cash 11,060 4,600 Accounts Receivable - net - 5,400 4,200 3,300 1,700 Merchandise Inventory $ 20,660 $ 9,600 Total Current Assets Noncurrent Assets Investments in Bonds $ $ 35,000 45,000 14,000 57,000 Property, Plant, and Equipment - net $ Total Noncurrent Assets $ 80,000 71,000 $ 100,660 $ 80,600 Total Assets - Balance Sheet Total Assets Liabilities Current Liabilities 2,800 $ 4,100 Accounts Payable Accrued Expenses 7,100 1,800 7,000 2,650 Income Taxes Payable $ 11,700 $ 13,750 Total Current Liabilities Noncurrent Liabilities $ Notes Payable $ 31,000 26,000 $ 31,000 $ Total Noncurrent Liabilities 26,000 $ 42,700 $ 39,750 Total Liabilities Shareholders' Equity $ 16,000 $ 9,500 Common Stock, $1 par value Additional Paid-in Capital in Excess of Par - Common 19,000 16,000 Common 19,000 22,960 16,000 15,350 Retained Earnings $ Total Shareholders' Equity $ 57,960 40,850 $ 100,660 $ 80,600 Total Liabilities and Shareholders' Equity - Income Statement Income Statement For the Year Ended December 31 Sales $ 70,000 38,600 Cost of Goods Sold Gross Profit $ 31,400 Selling, General, and Administrative Expenses $ 14,000 6,600 Depreciation Expense $ 20,600 Total Operating Expenses Operating Income Interest Expense $ 10,800 $ (1,600) 554 Investment Income Income before Tax 9,754 (1,644) Income Tax Expense $ 8,110 Net Income

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