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The income statement for Weinberg Chemical Supply is as follows:
Weinberg Chemical SupplyIncome StatementFor the Year Ended December 31, 2011Sales .................... $1,025,000Less:Cost of goods sold ..............$ 620,000Depreciation expense ............$ 65,000Amortization of patent ...........$ 6,500Wages expense ..............$ 61,000Insurance expense ...............$ 12,000Income before taxes ............$ 260,500Less income taxes .............$ 91,175Net income .................$ 169,325Other information is as follows:1. Accounts receivable decreased by $13,000 during the year.2. Accounts payable increased by $6,500.3. Wages payable had a balance of SO at the beginning of the year; at the end of the year, the balance was $4,300.4. Prepaid insurance increased by $7,500 during the year.
Required:
Prepare a schedule that shows the operating cash flows for the year using the indirect method.
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