Refer to the information for Piura Merchandising Corporation below.
The income statement for Piura Merchandising Corporation is as follows:

Other information is as follows:
a. Accounts payable decreased by $20,000 during the year.
b. Accounts receivable increased by $20,000.
c. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000.
d. Prepaid insurance increased by $24,000 during the year.
Required:
Prepare a schedule that provides the operating cash flows for the year using the indirect method.

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Piura Merchandising Corporation Income Statement At December 31,2015 Sales Less: Cost of goods sold Beginning inventory Purchases Ending inventory $1,500,000 S 400,000 800,000 (200,000) (1,000,000) (100,000) (20,000) (80,000) Less: Depreciation expense Less: Amortization of patent Less: Wages expense Less: Insurance expense Income before taxes Less: Income taxes (all current) S 260,000) (104.000) 156,000 Net income