Kennedy, Inc. reported the following data: Net income Depreciation expense Loss on disposal of equipment Increase in accounts receivable Decrease in accounts payable $118,000 15,000 10,000 7,000 (2,000) Prepare the cash flows for operating activities under the indirect method as it would appear ont statement of cash flows. Not Income meciurent year was $210,000. Depreciation ulding amount to $62,500 for the year. Balonces of the current asset The net income reported on the income statement for the current year was SA recorded on equipment and a building amount to 562,500 for som unies accounts at the beginning and end of the year are as follows: End of You Beginning of Year Cash Accounts receivable (net) Laventories Prepaid expenses Accounts payable (merchandise creditors) Salaries poyable $56,000 71,000 140,000 7.800 62,6001 9,000 $59,500 73,400 126,500 3,400 66,400 1.250 Required: (1) Prepare the Cash flows for Operating Activities section of the statement of cash flows, using the indirect method. Het Income