Determining Net Cash Flow from Operating Activities

Presented below are selected balance sheet information and the income statement for Burch Company.

Selected Balance Sheet Information
	Jan. 1		Dec. 31
Cash	$9,300		$17,500
Accounts receivable	8,000		10,500
Inventory	24,500		21,000
Accounts payable	10,000		15,000
Income taxes payable	2,500		1,200

Burch Company
Income Statement
For the year ended December 31
Sales	$250,000
Cost of goods sold	(160,000)
Depreciation expense	(15,600)
Other expenses	(35,000)
Income tax expense	(12,000)
Net income	$27,400

Required:

Compute the net cash flows from operating activities using the indirect method. $fill in the blank