Cash flows from Operating Activities Net income $ 40,000 Adjustments: Depreciation expense 8,000 Amortization expense-patent 100 Amortization of premium on bonds payable 0 x Decrease in accounts receivable 1,800 Increase in merchandise inventory (2,500) Increase in accounts payable 4,000 Increase in long-term liabilities 0 Decrease in salaries payable (1,200) Sale of capital stock for cash Stock dividend issued 0 0 Net cash provided (used) by operating activities $ 50,200 x