The balance sheet and income statement of Rocky’s Candy Company contain the following information: balance sheet: a decrease in inventory of $1,050,000, a decrease in accounts payable of $349,000, an increase in accounts receivable of $314,000, and a decrease in prepaid expenses of $141,000. Income statement: depreciation expense is $679,000, fixed assets and inventory write-down losses of $294,000, net earnings of $189,700, and stock-based compensation expense (noncash) of $742,000.

Prepare cash flows from operating activities section of the statement of cash flows, using the indirect method and explain your results.