Depreciation expense $36,000 Gain on disposal of equipment 21,000 Net income 317,500 Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows: Increase in accounts receivable $5,600 Decrease in inventory 3,200 Decrease in prepaid 1,200 insurance Decrease in account payable 3,800 Increase in income taxes payable 1,200 Increase in dividends 850 payable Required: Prepare the Cash Flows from Operating Activitiess section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments Operating Activities Section Cash flows from operating activities: Net income 317,500 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 36,000 Gain on disposal of equipment 21,000 Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Net cash flow from operating activities