Harrell Company reported net income of $320,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 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 $22,000 $15,000

Accounts receivable 17,000 32,000

inventories 55,000 65,000

prepaid expense 7,500 5,0000

Accounts Receivable 11,000 18,000

Income taxes payable 600 1,200

prepare the cash flow from the operating activities section of the statement of cash flows using the indirect method