Lone Star Hat Company Uses the Direct Method for Its

Lone Star Hat Company uses the direct method for its statement of cash flow.Assume Accrued Liabilities relate to Operating Expenses.It reports the following information regarding the year ending December 31,2018:
Lone Star Hat Company
Income Statement
For the Year Ended December 31, 2018
$$\begin{array} { l l } \text { Sales Revenue } & \$ 312,000 \\\text { Cost of Goods Sold } & 247,000 \\\text { Operating expenses } & \$ 32,500 \\\text { Net Income } & \$ 32,500\end{array}$$ $\begin{array}{c}\text { Lone Star Hat Company}\\\text { Partial Balance Sheet }\\\text { December 31,2018 and 2017}\\\begin{array}{lll}&2018&2017\\\text { Accounts Receivable (net) } & \$ 19,500 & \$ 15,600 \\\text { Merchandise Inventory } & 23,400 & 28,600 \\\text { Accrued Liabilities } & 1,560 & 3,900 \\\text { Accounts Payable (Merchandise Inventory) } & 15,600 & 9,100\end{array}\end{array}$
Assume that there were no sales of long-term assets,no interest revenue,and no expenses other than the expenses shown above.Also,assume that Accounts Payable is for purchases of merchandise inventory only.Prepare the operating activities section of the statement of cash flows.