Use the following income statement and information about selected current assets

Question

Use the following income statement and information about selected current assets and current liabilities to calculate the net cash provided or used by operating activities using the direct method.

PETERS COMPANY Income Statement For Year Ended December 31, 2013
Sales		$180,000
Cost of goods sold		104,000
Gross profit from sales		$ 76,000
Operating expenses:
Salaries and wages expense	$25,000
Depreciation expense	5,000
Rent expense	7,200
Interest expense	1,900	39,100
Income from operations		$36,900
Gain on sale of land		2,000
Net income		38,900

Selected beginning and ending balances of current asset and current liability accounts, all of which relate to operating activities, are as follows:

	Balance
	Dec. 31, 2013	Dec, 31, 2012
Accounts receivable	$27,600	$24,000
Merchandise inventory	18,200	20,000
Prepaid rent	550	400
Accounts payable	27,100	31,000
Salaries and wages payable	10,400	9,000
Interest payable	300	250