Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $674,000. Depreciation and amortization expense of $97,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:

Decrease in accounts receivable	$	32,000
Increase in inventory		10,200
Increase in prepaid expenses		9,500
Increase in salaries payable		11,000
Decrease in income taxes payable		12,000

Required: Prepare the operating activities section of the 2021 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

$ 674,000 97.000 Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation and amortization expense Changes in operating assets and liabilities: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in salaries payable Decrease in income taxes payable 32.000 (10,200) (9,500) 11.0001 (12.000) Net cash flows from operating activities $ 782,300