1. Using the indirect method, calculate the amount of cash flows provided (used) by operating activities from the following data:

Net income $392,000

Beginning accounts receivable 54,000

Ending accounts receivable 43,000

Beginning prepaid expenses 8,000

Ending prepaid expenses 2,000

Beginning accounts payable 7,000

Ending accounts payable 17,000

Depreciation expense 46,000

Please explain how to calculate the amount of cash flows