The current sections of Birmingham Inc.’s balance sheets for December 31, 2016, and 2017, are presented here. Birmingham’s net income for 2017 was $193,000. The income statement included depreciation expense, $25,000, amortization expense, $10,000, and a gain on disposal of equipment, $7,000. The equipment was sold for $47,000. Birmingham also issued bonds for $60,000.

2017 2016

Current assets

Cash $417,000 $ 99,000

Accounts receivable 120,000 93,000

Inventory 159,000 176,000

Prepaid expenses 29,000 24,000

Total current assets $725,000 $392,000

Current liabilities

Accrued expenses payable $ 17,000 $ 6,000

Accounts payable 88,000 94,000

Total current liabilities $105,000 $100,000

Instructions

Prepare the net cash provided by the operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method.