INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER $31,2014$

Sales

Cost of goods sold

Gross profit

Operating expenses

Selling expenses $,$$$52,000$

Administrative expenses $89,000,141,000$

Net income

$$755,000$

$543,000$

$212,000$

$$71,000$

Additional information:

Accounts receivable decreased $$63,000$ during the year.

Inventory increased $$38,000$ during the year.

Prepaid expenses increased $$12,000$ during the year.

Accounts payable to increased $$25,000$ during the year.

Accrued expenses payable increased $$6,000$ during the year.

Administrative expenses include depreciation expense of $$20,000.$

Instruction: Prepare the operating section of the cash flow statement using the indirect method.

account name

sign $\frac{+}{-}$

$$$amount

Net cash flow from operating activities

Net income