Reference no: EM132681236
Question - The net income reported on the income statement for the current year was $825,000. Depreciation recorded on equipment and a building amounted to $90,000 for the year. There was a gain on the sale of assets of $12,000. 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
Change Cash $89,000 $96,000
Accounts Receivable (net) $111,000 $118,400
Inventories $220,000 $200,000
Prepaid expenses $12,800 $14,000
Accounts payable (merchandise creditors) $95,000 $104,000
Salaries payable $16,000 $13,600
Required - Make the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.