1. The following information pertains to Night Company for the year 2006: Income Statement Sales Expenses Cost of goods sold Depreciation expense Salaries expense Net income $50,000 7,000 11,000 2006 $14,000 7,000 1,500 $80,000 68,000 $12,000 2005 $10,000 15,000 1,000 Partial Balance Sheet Accounts receivable Inventory Salaries payable Prepare the operating activities section of the statement of cash flows using the indirect method.

1. The following information pertains to Night Company for the year 2006: Income Statement Sales $80,000 Expenses Cost of goods sold: $50,000 Depreciation expense 7,000 Salaries expense 11,000 68.000 Net income $12,000 Partial Balance Sheet 2006 2005 Accounts receivable $14,000 $10,000 Inventory 7,000 15,000 Salaries payable 1,500 1,000 Prepare the operating activities section of the statement of cash flows using the indirect method.