The current assets and liabilities sections of the comparative balance sheets of Charron Inc., a private company reporting under ASPE, at October 31 are presented below: 

Instructions

Prepare the operating activities section of the cash flow statement using the indirect method?

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CHARTRAND INC. Comparative Balance Sheet Accounts 2013 2014 Cash Accounts receivable $99,000 $105,000 52,000 41,000 Inventory Prepaid expenses Accounts payable Accrued expenses payable Dividends payable Income taxes payable 32,500 46,000 7,500 5,800 43,000 36,000 5,000 8,000 24,000 17,000 11,800 6,800 CHARTRAND INC. Income Statement Year Ended October 31, 2014 Sales $625,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Loss on sale of equipment 390,000 235,000 $88,000 23,000 10,000 121,000 Profit before income taxes 114,000 Income taxes 29,000 Profit $ 85,000