Delta Air Lines, Inc, typically referred to as Delta, is one of the major airlines of the United States. A condensed income statement fox the year ended December 31, 2021, appears below:

Service Revenue $1,200,000

Operating expenses $850,000

Income before income taxes $350,000

Income tax expenses $87,500

Net Income $262,500

The following balance sheet Information also is available:

Cash $462,500 $85,000

accounts receivable $150,000 $115,000

accrued liabilities (for operating expenses). $100,000 $75,000

income taxes payable $25,000 $45,000

In addition, the following transactions took place during the year:

1. Common stock was issued for $130,000 in cash
2. Long-term investments were sold for $65,000 in cash. The original cost of the investments also was $65,000
3. $95,000 in cash dividends was paid to shareholders
4. The company has no outstanding debt, other than those payables listed above
5. Operating expenses include $45,000 in depreciation expense.

Required:

1. Prepare the cash flows from operating activities section of Delta's 2021 statement of cash flows using the indirect method

Required

Prepare the cash flows from operating activities section of Delta's 2021 statement of cash flows using the indirect method. (Amounts to be deducted should be Indicated with a minus sign)

Delta Airlines

Statement of Cash Flows (Partial)

For the Year Ended December 31, 2021

Cash flows from operating activities:

Adjustments for noncash effects:

Changes in operating assets and liabilities:

Net cash flows from operating activities: