Hardware Distributors reports net income of $56,000. Included in that number is depreciation expense of $10,500 and a loss on the sale of land of $5,100. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $26,000, a decrease in inventory of $15,500, and an increase in accounts payable of $46,000.

Required: Prepare the operating activities section of the statement of cash flows using the indirect method.