Based on the Information in the Following Income Statement and Balance

Based on the information in the following income statement and balance sheet for Monterey Corporation, determine the cash flows from operating activities using the direct method.
Monterey Corporation Income Statement
For Year Ended December 31, 20X2

$$\begin{array} { | l | l | l | } \hline \text { Sales } & & \$ 504,000 \\\hline \text { Cost of goods sold } & 327,600 & \\\hline \text { Depreciation } & 42,000 & \\\hline \text { Other operating expenses } & 125,500 & ( 495,100 \\\hline \text { Other gains (losses): } & & \\\hline \text { Gain on sgle of equipment } & & 7,200 \\\hline \text { Income before taxes } & & 16,100 \\\hline \text { Income tax expense } & & ( 4,800 \\\hline \text { Net income } & & \$ 11,300 \\\hline & &\end{array}$$