Portions of the financial statements for Just In Case Technologies are provided below.

JUST IN CASE TECHNOLOGIES

Income Statement

For the Year Ended December $31,2024$

Net sales $$405,000$

Expenses:

Cost of goods sold $$235,000$

Operating expenses $70,000$

Depreciation expense $17,000$

Income tax expense $27,000$

Total expenses $349,000$

Net income $ $56,000$

JUST IN CASE TECHNOLOGIES

Selected Balance Sheet Data

December $31,2024,$ compared to December $31,2023$

Decrease in accounts receivable $ $7,000$

Increase in inventory $14,000$

Decrease in prepaid rent $10,000$

Increase in salaries payable $6,000$

Decrease in accounts payable $9,000$

Increase in income tax payable $24,000$

Required:

Prepare the operating activities section of the statement of cash flows for Just In Case Technologies using the indirect method. $($Amounts to be deducted should be indicated with a minus sign.$)$

JUST IN CASE TECHNOLOGIES

Statement of Cash Flows

For the Year Ended December $31,2024$

Cash Flows from Operating Activities:

$$412,000$

Adjustments to reconcile net income to net cash flows from operating activities

Net cash flows from operating activities $$412,000$