Question: An income statement for Hamilton Corporation follows:
Additional Information:
a. Decrease in accounts receivable (net of allowance for doubtful accounts), $36,000.
b. The prepaid insurance account increased by $4,800 during the year.
c. Included in salary expenses are salaries of $9,600 accrued at the end of the year; no salaries were unpaid at the beginning of the year.
d. The bonds payable had a book value of $240,000 at the date of retirement.
e. Increase in accounts payable, $21,000.
Required: Prepare a schedule showing the net cash flows generated by the operating activities of Hamilton Corporation. Use the direct method.