I'm confused, can someone help and explain? Thank you.

question #52 Operating Activity section of Statement of Cash Flows. Based on the following income statement and balance sheet for Rashid Corporation, prepare the cash flows from operating activities for 2019 using the Indirect method $500,000 RASHID CORPORATION Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold $323600 Depreciation expense 40,000 Other operating expenses 125,500 Other gains (losses); Goin on sale of equipment Income before taxes Income tax expense Net income (495,100) 5.200 $16,100 14.800) $11.300 RASHID CORPORATION Balance Sheets At December 31 2019 2018 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation Total assets $ 64,650 22000 57.000 240.000 (106.000) $277.650 $ 55,800 29,000 52,100 222,000 (96.000) $262.900