Based on the following income statement and balance sheet for Rashid Corporation, determine the cash flows from operating activities using the indirect method. Rashid Corporation Income Statement For Year ended Dec. 31, 2011 Sales 504,000 Cost of goods sold 327,600 Depreciation expense 42000 other operating expenses 125500 (495100) other gains (losses): Gain on sale of equipment 7200 Income before taxes 16100 Income tax expense (4800) Net income 11,300 Rashid Corporation Balance Sheets For Year ended Dec. 31, 2011 2009 2008 Assets Cash 64650 55800 Accounts Receivable 21000 29000 Inventory 58000 52100 Equipment 240000 222000 Accumulated depreciation (106000) (96000) Total assets 277650 262900 Liabilities: Accounts Payable 28400 23700 Income taxes payable 1050 1200 Total Liabilities 29450 24900 Equity Common Stock 106000 106000 Capital in excess of par value 18000 18000 Retained earnings 124200 114000 Total equity 248200 238000 Total liabilities and equity 277650 262900