Salud Company reports net income of $400,000 for the year ended December 31, 2008. It also reports

$80,000 depreciation expense and a $20,000 gain on the sale of machinery. Its comparative balance sheets reveal a $40,000 increase in accounts receivable, $6,000 increase in accounts payable, $12,000 decrease in prepaid expenses, and $2,000 decrease in wages payable.

Required Prepare only the operating activities section of the statement of cash flows for 2008 using the indirect method.

AppendixLO1