Reference no: EM13918018

The income statement for ABC Remodel for 2014 is as follows:

                                                          ABC Remodel

                                                          Income Statement

                                           For the Year Ended December 31, 2014

Sales                               1,030,000

Cost of goods sold              630,000

Gross profit                       400,000

Less:

      Depreciation expense              65,000

      Amortization of patent            7,500

      Wages expense                     59,000

      Insurance expense                 11,000            142,500

Income before taxes                    257500

Less income taxes                        91,000

Net income                                 166,500

Also,

Accounts receivable decreased by $25,000 during the year.

Accounts payable increased by $7,000.

Wages payable had a balance of $0 at the beginning of the year; at the end of the year, the balance was $6,000

Prepaid insurance increased by $10,000 during the year.

Prepare the operating activities section of the statement of cash flows for 2014 for ABC Remodel using the indirect method.