The net income reported on the income statement for thecurrent year was $167,900. Depreciation recorded on equipmentand a building amounted to $41,300 for the year. Balances onthe current asset and current liability accounts at the beginningand end of the year are as follows:
Endof theyear Beginningof the year
Cash $27,900 $30,900
Accounts receivable(net) 75,100 70,250
Inventories 120,400 110,900
Prepaidexpenses 5,800 6,000
Accounts payable (merchandisecreditors) 67,200 65,300
Salariespayable 7,150 7,950
INSTRUCTIONS:
Prepare the cash flowsfrom operating activities section of the statement ofcash flows, using the indirect method.