Olhstead Company’s calendar-year 2008 income statement shows the following: Net Income, $374,000;

Depreciation Expense, $44,000; Amortization Expense, $7,200; Gain on Sale of Plant Assets, $6,000.

An examination of the company’s current assets and current liabilities reveals the following changes (all from operating activities): Accounts Receivable decrease, $17,100; Merchandise Inventory decrease,

$42,000; Prepaid Expenses increase, $4,700; Accounts Payable decrease, $8,200; Other Payables increase,

$1,200. Use the indirect method to compute cash flow from operating activities.

AppendixLO1