ok = ces Post-closing Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation expense Gain on sale of equipment Cash paid for merchandise SANCHEZ INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in accounts payable Decrease in prepaid expenses Decrease in wages payable Decrease in income taxes payable Net cash provided by operating activities Net cash provided by operating activities using the diront $ 77,000 (5,200) 0 (15,000) 27,000 (7,000) 1,400 (10,000) (400) 0 $ $ 138,920 67,800 206,720