Cash flows from operating activities—indirect method OBJ. 2 Pettygrove Inc. reported the following data:

Net income $405,000 Depreciation expense 45,000 Gain on disposal of equipment 36,900 Decrease in accounts receivable 25,200 Decrease in accounts payable 6,480 Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.