Plough Company reported net income of $180,000 for the current year. Depreciation

recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current

asset and current liability accounts at the beginning and end of the year are as follows:

End of Year Beginning of Year

Cash $20,000 $15,000

Accounts receivable 24,000 32,000

Inventories 50,000 65,000

Prepaid expenses 9,500 5,000

Accounts payable 12,000 18,000

Income taxes 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.