1) Use the following income statement and information about changes in noncash current assets and liabilities to (1) prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method Davey Company Income Statement For Year Ended December 31 S880,000 487.000 $393,000 Sales Cost of goods sold Gross profit Operating expenses: Salaries expense Rent expense Depreciation expense Amortization expense Utilities expenses income from operations Loss on sale of equipment Income before taxes Income tax expense Net Income S144,000 76,000 45,000 22,000 12.000 299,000 S 94,000 14.000 s 80,000 28,500 S 51,500 Changes in current asset and current liability accounts for the year that relate to operations follow. S 32,000 Increase in accounts receivable Increase in accounts payable (all accounts payable transactions are for inventory) Decrease in prepaid expenses Decrease in merchandise inventory Decrease in long-term notes payablei 13,500 9,200 14,000 20,000 Answer (1) Davey Company Cash flows from operating activities Net cash provided by operating activities