1. Hitchcock Exhibit

Use the following selected date and additional information from the records of Hitchcock Corporation to answer the question that follows.

Balance Sheet Data 2004 2003

Accounts Receivable $50,000 $40,000

Inventories 22,000 25,000

Prepaid Rent 13,000 5,000

Accounts payable 13,000 20,000

Salaries payable 9,000 15,000

Taxes payable 18,000 11,000

Income Statement Data 2004

Depreciation Expense 6,000

Net Income 50,000

Required: Prepare the Operating Activities section of the Statement of Cash Flows for the year ended 2004. Use the INDIRECT Method.