Item 2: Entity O reported net income of $225,000 for the current year. Depreciation recorded on buildings and equipment amounted to $75,000 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 Accounts receivable Inventory $20,000 22,000 72,000 12,000 5,000 $15,000 32,000 60,000 18,000 3,000 Accounts payable Taxes payable Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method