Freeport Company's income statement for last year is as follows: Income Statement Sales $300,000 Less: Cost of goods sold 200,000 Gross margin 100,000 Less: Operating expenses 60,000 Income before taxes 40,000 Less: Income taxes 16,000 Net income $24,000 The beginning and ending balances for last year are available for the following accounts: Ending balance Beginning balance Accounts receivable $32,000 $40,000 Inventory 60,000 50,000 Prepaid expenses 12,000 8,000 Accumulated depreciation (40,000) (30,000) Accounts payable 30,000 45,000 Accrued liabilities 16,000 10,000 Income taxes payable 2,000 5,000 Required: Using the direct method, prepare the operating activities section of the statement of cash flows. Amounts to be deducted should be indicated by a minus sign. Freeport Company Operating Activities Section $ Adjustments for conversion to cash basis: $ Adjustments for conversion to cash basis: Adjustments for conversion to cash basis: Adjustments for conversion to cash basis: Net cash flows from operating activities