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The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales revenue $ 60,000 $ 50,000 $ 101,000 Cost of goods sold 32,500 23,500 74,000 Depreciation expense 11,500 1,500 27,500 Salaries and wages expense 4,500 12,500 7,500 Net income (loss) 11,500 12,500 (8,000 ) Accounts receivable increase (decrease) (1,000 ) 3,500 2,500 Inventory increase (decrease) 1,500 0 (2,500 ) Accounts payable increase (decrease) 0 2,000 (1,000 ) Salaries and wages payable increase (decrease) 1,250 (1,500 ) 1,000 Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
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