1.

St. Joes Inc. reported a $15,000 net loss for 2008. Below are the increases and decreases in selected accounts for 2006:

Accounts Receivable

$10,000 increase

Inventory

2,000 decrease

Prepaid Expense

5,000 decrease

Accounts Payable

3,000 increase

Interest Payable

2,000 decrease

Accumulated Depreciation

8,000 increase

St. Joes Inc. had no changes in its plant or equipment.

Required:

Prepare the operating activities section of the statement of cash flows for St. Joes Inc. for 2008, using the indirect method.