Pita Pan, Inc. uses the indirect method to prepare its statement of cash flows. Presented below are selected items from its financial statements.

$12/31/20$X$312/31/20$X$2$

Accounts receivable $$46,000$ $$38,000$

Prepaid insurance $$5,000$ $$3,000$

Wages payable $$16,000$ $$13,500$

Interest payable $$1,000$ $$4,800$

Sales revenue $$230,000$

Cost of goods sold $$165,000$

Wages expense $$98,000$

Insurance expense $$8,200$

Interest expense $$11,200$

Calculate the amount related to prepaids that will be added to or subtracted from Net Income in preparing the Cash from Operating Activities using the indirect method. If subtracted from Net Income, enter as a negative amount.

Pita Pan, Inc. uses the indirect method to prepare its statement of cash flows. Presented below are selected items from its financial statements.

Calculate the amount related to prepaids that will be added to or subtracted from Net Income in preparing the Cash from Operating Activities using

the indirect method. If subtracted from Net Income, enter as a negative amount.