PA4. LO 16.3 Use the following information from Coconut Company's financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Cash Accounts Receivable Inventory Prepaid Rent Accounts Payable Dec. 31, 2018 $ 201,000 22,000 33,750 6,000 19,500 Dec. 31, 2017 $175,000 21,500 30,500 2,000 28,750 Additional information: Net income 55,000 Depreciation expense 11,500 Solution Operating Activities: Net Income Depreciation Expense Accounts Receivable Inventory Prepaid Rent Accounts Payable Net cash flows from operating activities