The net income reported on the income statement for the current year is $210,000. Depreciation recorded on equipment
and a building amount to $62,500 for the year. Balances of the current asset and current liability accounts at the beginning
and end of the year are as follows:
End of Year Beginning of Year
Cash $ 56,000 $ 59,500
Accounts Receivable (net) 71,000 73,400
Inventories 140,000 126,500
Prepaid Expenses 7,800 8,400
Accounts Payable (merchandise creditors) 62,600 66,400
Salaries Payable 9,000 8,250
Prepare the operating activities section of the statement of cash flows, using the
indirect method