Fly Incorporated reported profit of $250,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 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 Year

Beginning of Year

Cash

$20,000

$15,000

Accounts receivable

19,000

32,000

Inventories

50,000

65,000

Prepaid expenses

7,500

5,000

Accounts payable

12,000

18,000

Income taxes payable

1,600

1,200

Instructions Prepare the operating activities section of the cash flow statement, using the indirect method.