Prepare the Operating Activities section of the Statement of Cash Flows using the indirect method.

Balance Sheet Assets 2020 2019 Liabilities and Equity Cash $4,000 $6,500 Accounts payable A/R 5,000 7,200 Salaries payable Supplies 12,000 9,700 Common stock Equipment (net) 21,000 28,000 Retained earnings Total assets $42,000 $51,400 Total liabilities and equity Select information from the 2020 Income Statement: Net income $15,400 Depreciation expense $8,500 Operating expenses $37,800 Gain on sale of equipment $4,200 2020 $7,000 1.000 $2,000 32,000 $42,000 2019 $4,500 3,800 6,000 37,300 $51,400