Messner Co. reported €145,000 of net income for 2015. The accountant, in preparing the statement of cash flows, noted several items occurring during 2015 that might affect cash flows from operating activities. These items are listed below.

1. Messner purchased 100 treasury shares at a cost of €20 per share. These shares were then resold at €25 per share.

2. Messner sold 100 ordinary shares of Nokia at €200 per share. The acquisition cost of these shares was €165 per share. This investment was shown on Messner’s December 31, 2014, statement of financial position as a non-trading equity investment.

3. Messner revised its estimate for bad debts. Before 2015, Messner’s bad debt expense was 1% of its net sales. In 2015, this percentage was increased to 2%. Net sales for 2015 were €500,000, and net accounts receivable decreased by €12,000 during 2015.

4. Messner issued 500 ordinary shares with a €10 par value for a patent. The fair value of the shares on the date of the transaction was €23 per share.

5. Depreciation expense is €39,000.

6. Messner Co. holds 30% of the Sanchez Company’s ordinary shares as a long-term investment. Sanchez Company reported €27,000 of net income for 2015.

7. Sanchez Company paid a total of €2,000 of cash dividends to all investees in 2015.

8. Messner declared a 10% share dividend. One thousand ordinary shares with a €10 par value were distributed. The market price at date of issuance was €20 per share.

Instructions 

Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than those listed above affected the computation of 2015 net cash flow from operating activities.