COMPUTING NET CASH FLOW FROM OPERATING ACTIVITIES Brandon Inc. reported the following items in its balance sheet and income statement:

net income, $85,600; gain on sale of equipment, $12,800; increase in accounts receivable, $15,400; decrease in accounts payable, $25,900, and increase in common stock,

$40,000.

Required:

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

Cornerstone Exercise