EXERCISE 16-2 The net income reported on the income statement of Hunter Inc. for the current year was $150,000. Depreciation recorded on equipment and building amounted to $45,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Beginning Year of Year Cash $ 42,875 $ 36,250 Trade receivables (net) 147,500 137,500 Inventories 109.375 93,750 Prepaid expenses 9,250 11,875 Accounts payable (merchandise creditors) 57,000 40,000 Salaries payable 7,625 10,625 Instructions: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method