Pesci Ltd. is a private company reporting under ASPE. Its income statement and changes in current assets and current liabilities for the year are reported below:

Instructions
Prepare the operating activities section of the cash flow statement using the indirect method.

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PESCI LTD. Income Statement Year Ended November 30, 2014 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Gain on sale of equipment Profit before income tax Income tax expense Profit $948,000 490,000 458,000 $310,000 50,000 (10,000) 350,000 108,000 30,000 $ 78,000 Changes in current assets and current liabilities were as follows Accounts receivable Inventory Prepaid expenses Accounts payable Dividends payable Income taxes payable S36,000 19,000 2,000 12,000 5,000 4,000 decrease increase increase decrease decrease decrease