The Income Statement and a Partial Balance Sheet of Williams

The income statement and a partial balance sheet of Williams Company for the year ended December 31, 2014 is presented below. Prepare the operating activities section of the statement of cash flows using the direct method. Assume the Accrued Liabilities relate to Miscellaneous Operating Expenses.
Income Statement
$\begin{array}{llcc} \text { Sales Reverues } & \$1,500,000 \\ \text { Cost of Goods Sold } &\underline{1,170,000}\\ \text { Grong profit } &\$330,000\\\end{array}$
Operating expenses:
$\begin{array}{llcc} \text { Salaries Expense } & \$210,000 \\ \text { Depreciation Expense } &60,000\\ \text { Miscellaneous Expenses } &\underline{30,000}&\underline{300,000}\\ \text { Net Income } &&\underline{\$30,000}\\\end{array}$
Partial Balance Sheet
$$\begin{array} { l l l } & 2014 & 2013 \\\text { Cash } & \$ 240,000 & \$ 195,000 \\ \text { Accounts Receivable (net) } & 150,000 & 150,000 \\\text { Inventories } & 306,000 & 258,000 \\\text { Accrued Liabilities } & 13,500 & 15,000 \\\text { Accounts Payable (inventory) } & 174,000 & 153,000 \\\text { Salaries Payable }& 22,500 & 18,000\end{array}$$