3:40 P. LO 2 HW 6 - Chapter 15.pdf - Read-only Cash Flows from Operating Activities: Indirect Method E2B. The condensed single-step income statement for the year ended December 31, 2014, of Shapiro Chemical Company, a distributor of farm fertilizers and herbicides, follows. $13,000,000 Sales Less: Cost of goods sold Operating expenses (including depreciation of $820,000) Income taxes expense Net income $7,600,000 3,800,000 400,000 11,800,000 $ 1,200,000 Selected accounts from Shapiro Chemical's balance sheets for 2014 and 2013 follow. 2013 Accounts receivable Inventory Prepaid expenses Accounts payable Accrued liabilities Income taxes payable 2014 $2,400,000 840,000 260,000 960,000 60,000 140,000 $1,700,000 1,020,000 180,000 720,000 100,000 120,000 Prepare a schedule of cash flows from operating activities using the indirect method