Jerez Company reported net income of \(\$ 190,000\) for 2010 . Jerez also reported depreciation expense of \(\$ 35,000\) and a loss of \(\$ 5,000\) on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of \(\$ 15,000\) for the year, a \(\$ 17,000\) increase in accounts payable, and a \(\$ 4,000\) decrease in prepaid expenses.

Instructions:

Prepare the operating activities section of the statement of cash flows for 2010. Use the indirect method.