of cash ct Chew Corporation prepares its statement of cash flows using the indirect method of reporting operating activi- ties. Net income for the 2018 fiscal year was $1,250,000. Depreciation expense of $140,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: 1250,000 Increase in accounts receivable $152,000 Decrease in inventories 108,000 Decrease prepaid expenses 62,000 Decrease in salaries payable (30,000 Increase in income taxes payable 44,000 Required: Calculate cash flows from operating activities for 2018. 172,000 200 The following incorrect income statement was prepared by the accountant of the Axel Corporation: $592,000 32,000 86,000 710,000 AXEL CORPORATION Income Statement For the Year Ended December 31, 2018 Revenues and gains: Sales Interest and dividends Gain on sale of investments Total revenues and gains Expenses and losses: Cost of goods sold $325,000 Selling expenses 67,000 Administrative expenses 87,000 Interest 26,000 Restructuring costs 55,000 Income taxes 60,000 Total expenses and losses Net Income Earnings per share 620,000 $ 90,000 $ 0.90 Required: Prepare a multiple-step income statement for 2018 applying generally accepted accounting principles. The income tax rate is 40%