Calculate cash from operating activities using the indirect method. (LO 5)

St. Augustine Steel Inc. reported net income of \(\$ 320,000\) for 2008 . The company also reported depreciation expense of \(\$ 65,000\) and a loss of \(\$ 5,000\) on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of \(\$ 6,500\) for the year, a \(\$ 3,500\) increase in accounts payable, and a \(\$ 1,450\) decrease in prepaid expenses. Prepare the cash from operating activities section of the statement of cash flows for 2008 using the indirect method.