1.

Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2018 fiscal year was $669,000. Depreciation and amortization expense of $96,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:

Decrease in accounts receivable$31,000

Increase in inventories10,100

Increase prepaid expenses9,400

Increase in salaries payable10,900

Decrease in income taxes payable20,000

Required:

Prepare the operating activities section of the 2018 statement of cash flows.(Amounts to be deducted should be indicated with a minus sign.)