Johnlee, Incorporated provided the following balance sheets and income statement for the current year. (Click the icon to view the balance sheet) (Click the icon to view the income statement.) Requirement Prepare the operating activities section of the cash flow statement using the indirect method. Assume accrued expenses relate to selling, general, and administrative expenses. All acquisitions of property, plant, and equipment were made using cash. (Use a minus sign or parentheses for any numbers to be subtracted. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) 13400 Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: 18234 1 Changes in Operating Working Capital Accounts: pital Account ha / / / / / / Net Cash Provided (Used) by Operating Activities Johnlee, Incorporated Balance Sheet At December 31 Ending Beginning hd Assets Current Assets Cash Accounts Receivable - net Merchandise Inventory 39,700 $ 8,100 2,600 2,000 $ 3,300 7,900 3,900 2,400 Prepaid Insurance 52,400 $ 17,500 Total Current Assets Noncurrent Assets Investments 1,700 $ 55,000 24,700 56,000 Property, Plant, and Equipment - net Total Noncurrent Assets 80,700 56,700 $ 109,100 $ 98,200 Total Assets Liabilities Lilin 1 Balance Sheet Togg Liabilities Current Liabilities Accounts Payable Accrued Expenses 4,600 $ 1,600 10,000 6,500 5,020 4,450 Income Taxes Payable 21,100 $ 11,070 Total Current Liabilities Noncurrent Liabilities Notes Payable 31,600 $ 42,430 Total Noncurrent Liabilities 31,600 $ 42,430 52,700 $ Total Liabilities 53,500 Shareholders' Equity 8,000 $ 8,000 Common Stock, $1 par value Additional Paid-in Capital in Excess of Par- Common 23,000 25,400 23,000 13,700 Retained Earnings Total Shareholders' Equity 56,400 $ 44,700 15 109,100 $ 98,200 Liabilities Current Liabilities Accounts Payable Accrued Expenses 1,600 4,600 $ 10,000 6,500 5,020 4,450 Income Taxes Payable 21,100 $ 11,070 Total Current Liabilities Noncurrent Liabilities 31,600 $ 42,430 Notes Payable 42,430 Total Noncurrent Liabilities 31,600 $ 52,700 $ 53,500 Total Liabilities Shareholders' Equity Common Stock, $1 par value Additional Paid-in Capital in Excess of Par- Common $ 8,000 $ 8,000 23,000 25,400 23,000 13,700 Retained Earnings | Total Shareholders' Equity 56,400 $ 44,700 || A Total Liabilities and Shareholders' Equity 109,100 $ 98,200 Print Done Johnlee, Incorporated Income Statement For the Year Ended December 31 Sales $ 79,685 47,651 Cost of Goods Sold $ 32,034 Gross Profit Selling, General, and Administrative Expenses $ 11,300 2,500 13,800 $ Depreciation Expense Total Operating Expenses Operating Income Interest Expense $ 18,234 (3,400) 3,700 Interest Revenue Income before Tax $ 18,534 (5,134) Income Tax Expense Net Income SS 13,400 Print Done