Rasheed Company reports net income of $390,000 for the year ended December 31, 2005. It also re¬

ports $70,000 depreciation expense and a $10,000 gain on the sale of machinery. Its comparative bal¬

ance sheets reveal a $30,000 increase in accounts receivable, $16,000 increase in accounts payable,

$8,000 decrease in prepaid expenses, and $12,000 decrease in wages payable.

Required Prepare only the operating activities section of the statement of cash flows for 2005 using the indi¬

rect method.