15-34 Algo The income statement for Piura Merchandising Corporation is as follows:

Income Statement

At December 31, 2015

Sales 1,575,000

Less:Cost of Goods Sold

Beginning Inventory $385,000

Purchases 705,000

Ending Inventory (295,000) ________

(795,000)

Less Depreciation Expense (62,000)

Less: Amortization of patent (15,000)

Less: Wages expense (69,000)

Less: Insurance expense (36,500)

Income before taxes $ 597,500

Less: Income taxes (all current) (102,500)

Net income $ 495,000

Other information is as follows:

A.Accounts payable decreased by $20,000 during the year.

B.Accounts receivable increased by $17,000.

C.All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000.

D.Prepaid insurance increased by $24,000 during the year.

Prepare a schedule that provides the operating cash flows for the year using the indirect method.

Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.

Amount Descriptions Amortization of patent

Decrease in accounts payable

Decrease in accounts receivable

Decrease in inventory

Decrease in prepaid insurance

Decrease in wages payable

Depreciation expense

Increase in accounts payable

Increase in accounts receivable

Increase in inventory

Increase in prepaid insurance

Increase in wages payable

Less cost of goods sold

Net cash from operating activities

Net income

Net loss