Cain Inc. reports net income of $19,000. Its comparative balance sheet shows the following changes: accounts receivable increased $10,000; inventory decreased $12,000; prepaid insurance decreased $5,000; accounts payable increased $7,000 and taxes payable decreased $6,000. Compute cash flows from operations using the indirect method.

QS 16-4 Indirect: Computing cash flows from operations LO P2 Cain Inc. reports net income of $19,000. Its comparative balance sheet shows the following changes: accounts receivable increased $10,000; inventory decreased $12,000; prepaid insurance decreased $5,000; accounts payable increased $7,000 and taxes payable decreased $6,000. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Cash Flows from Operating Activities (Indirect) Adjustments to reconcile net income to net cash provided by operating activities Changes in current assets and liabilities