15) Use the following income statement and information about changes in noncash current assets and liabilities to 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 Sales $880,000 Cost of goods sold 487,000 Gross profit $393,000 Operating expenses: Salaries expense $144,000 Rent expense 176,000 Depreciation expense 145,000 Amortization expense 122.000 Utilities expenses 12,000 299,000 Income from operations $ 94,000 Loss on sale of equipment 14,000 Income before taxes $ 80,000 Income tax expense 28.500 Net Income $51.500 ol + Changes in current asset and current liability accounts for the year that relate to operations follow. Increase in accounts receivable 32,000 Increase in accounts payable (all accounts payable transactions are for inventory) 113,500 Decrease in prepaid expenses 9,200 Decrease in merchandise inventory 114,000 Decrease in long-term notes payable 120,000