COMPUTING NET CASH FLOW FROM OPERATING ACTIVITIES An analysis of the balance sheet and income statement of Sanchez Company revealed the following: net income, $15,400; depreciation expense, $45,000: decrease in accounts receivable, $32,500: increase in inventory, $12,100: increase in accounts payable,

$15,200: and a decrease in interest payable of $800.

Required:

Compute the net cash flows from operating activities using the indirect method.

Cornerstone Exercise