Additional intormation: 1. Equipment originally costing $50,000 was sold during the year for $35,800. 2. The company had proceeds from short term bank loan of $4,200. Cash Flows from Operating Activities Net Income $ 20900 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities ^ \begin{tabular}{llll} \hline Depreciation Expense & 4 & $ & 19700 \\ \hline \end{tabular} Loss on Sale of Equipment 4600 Decrease in Accounts Receivable ^ Increase in Inventory Increase in Prepaid Expenses Decrease in Accounts Receivable