Assume Michelle Company reported the following for its most recent fiscal year: Net income, $200,000 Depreciation expense, $50,000 Increase in accounts receivable, $10,000 Decrease in merchandise inventory, $2,000 Increase in prepaid expenses, $1,000 Decrease in accounts payable, $9,000 Increase in wages payable, $3,000 Loss on sale of equipment, $1,000 Required: Prepare the operating section of the statement of cash flows using indirect method.