Canada Wide Transportation (CWT) began 2017 with accounts receivable, inventory, and prepaid expenses totaling $65,000. At the end of the year, CWT had a total of $78,000 for these current assets. At the beginning of 2017, CWT owed current liabilities of $42,000, and at year-end, current liabilities totaled $40,000.
Net income for the year was $80,000. Included in net income were a $4,000 gain on the sale of land and depreciation expense of $9,000.
Show how CWT should report cash flows from operating activities for 2017. CWT uses the indirect method. Use Exhibit 10-6 (p. 492) as a guide.
EXHIBIT 10-6
Statement of Cash Flows- Operating Activities by the Indirect Method

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Bradshaw Corporation Statement of Cash Flows For the Year Ended December 31,2017 2 (in thousands) 3 Cash flows from operating activities: 4 Net income $41 Adjustments to reconcile net income to net cash provided by operating activities: 6 (ADepreciation $ 18 7 (B) Gin on sale of plant, and equipment Increase in accounts receivable Increase in interest receivable Decrease in in Increase in prepaid expenses Increase in accounts payable Decrease in salary and wages payable Decrease in accrued liabilities (13) 10 3 12 13 34 27 $ 68 15 16 Net cash ed by operating activities