Green Brands, Incorporated (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBIs Year 2 and Year 1 year-end balance sheets:

Account TitleYear 2Year 1Accounts receivable$ 21,700$ 28,900Merchandise inventory59,90048,700Prepaid insurance18,30025,700Accounts payable26,20019,700Salaries payable4,8004,150Unearned service revenue9002,950

The Year 2 income statement is shown next:

Income StatementSales$ 604,000Cost of goods sold(376,000)Gross margin228,000Service revenue5,900Insurance expense(40,000Salaries expense(152,000)Depreciation expense(5,300)Operating income36,600Gain on sale of equipment3,200Net income$ 39,800 b. Prepare the operating activities section of the statement of cash flows using the indirect method for Year 2 . Note: Amounts to be deducted should be indicated with a minus sign