4. Prepare the cash flows from operating activities using the indirect method

Cash Flow from operating activities
Indirect Method
Net income	$ 220,000
Add: Depreciation	$ 25,600
Add: amortization of patents	$ 18,500
Less: Increase in Accounts Receivables (32300-31100)	$ (1,200)
Add: Decrease in inventories (56700-54800)	$ 1,900
Less: Decrease in Tax Payable (39600-37900)	$ (1,700)
Less: Increase in Prepaid (4000-3500)	$ (500)
Add: Increase in Accounts payable (46000-42900)	$ 3,100
Less: Decrease in wages Payable (23600-21400)	$ (2,200)
Net Cash flow from operating activities	$ 263,500