- Pierce Company reported net income of $160,000 with income tax expense of $19,000 for 2020. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the December31, 2019 and 2020 are as follows: Prepaid expenses 2020 $ 9,500 2019 $ 5,000 Inventories 55,000 65,000 Accounts receivable 24,000 32,000 Cash 20,000 15,000 Accounts payable 12,000 18,000 Accrued expense payable 1,600 1,200 Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.