Harrison Industries began $2021$ with its accounts receivable, inventory, and prepaid expenses totaling

$$48,000$ and its total current liabilities totaling $$20,000.$ At the end of the year, these same current

assets totaled $$49,000,$ while its total current liabilities totaled $$32,000.$ Net income for the year was

$$21,000.$ Included in net income were a $$5,000$ loss on the sale of land and depreciation expense of

$$7,000.$

Show how Harrison should report cash flows from operating activities for $2021.$ The company uses the

indirect method. $($Use parentheses or a minus sign for numbers to be subtracted and for a net decrease

in cash.$)$

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to net cash

provided by $($used for$)$ operating activities:

Depreciation

Loss on sale of land

Increase in accounts receivable, inventory, and prepaid

expenses

Increase in current liabilities

$$7,000$

$5,000$

$(1,000)$

$12,000$

Net cash provided by $($used for$)$ operating activities