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Question - Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shim's Year 2 and Year 1 year-end balance sheets:
Account Title
Year 2
Year 1
Accounts receivable
$32,993
$39,592
Prepaid rent
1,943
1,700
Interest receivable
364
291
Accounts payable
9,501
11,401
Salaries payable
2,997
3,425
Unearned revenue
2,688
3,584
The income statement reported a $1,820 gain on the sale of equipment, an $900 loss on the sale of land, and $3,700 of depreciation expense. Net income for the period was $53,767.
Required - Prepare the operating activities section of the statement of cash flows.
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