The Income Statement and a Partial Balance Sheet for Jefferson

The income statement and a partial balance sheet for Jefferson Company is presented below. Prepare the operating activities section of the statement of cash flows using the direct method.
Jefferson Company
Income Statement
For the Year Ended December 31, 2013
$$\begin{array} { | l | r | r |} \hline \text { Sales } & & \$ 500,000 \\\hline \text { Cost of goods sold } & & 390,000 \\\hline \text { Gross profit } & & \$ 110,000 \\\hline \text { Operating expenses: } & & \\\hline \text { Salaries } & \$ 70,000 & \\\hline \text { Depreciation expense } & 20,000 & \\\hline \text { Miscellaneous } & 10,000 & 100,000 \\\hline \text { Net income } & & \$ 10,000 \\\hline\end{array}$$
Jefferson Company
Partial Balance Sheet
December 31, 2013
$$\begin{array} { | l | r | r | } \hline & 2013 & { 2012 } \\\hline \text { Cash } & \$ 80,000 & \$ 65,000 \\\hline \text { Accounts receivable (net) } & 57,000 & 50,000 \\\hline \text { Inventories } & 102,000 & 86,000 \\\hline \text { Accrued liabilities } & 4,500 & 5,000 \\\hline \text { Accounts payable (inventory) } & 58,000 & 51,000 \\\hline \text { Salaries payable } & 7,500 & 6,000 \\\hline\end{array}$$