Preparing Operating Activities Section

Konverse Company reported net income of $600,000 in 2020. Depreciation expense was $45,000 and amortization expense on patents was $7,500 in 2020. In addition, the balance sheet reported the following balance changes during 2020.

Decrease in accounts receivable	$15,000
Increase in debt investments classified as available-for-sale securities	13,500
Decrease in prepaid expenses	6,000
Decrease in accounts payable	24,000
Increase in accrued expenses	13,500
Decrease in short-term nontrade notes payable	24,000

Prepare the operating activities section of the statement of cash flows using the indirect method.

Note: If an item is not required for this statement, leave the answer blank (zero).

Cash Flows from Operating Activities
Net income	Answer
Depreciation expense	Answer
Amortization expense	Answer
Decrease in accounts receivable	Answer
Decrease in prepaid expenses	Answer
Increase in debt investments classified as available-for-sale securities	Answer
Decrease in accounts payable	Answer
Increase in accrued expenses	Answer
Decrease in short-term nontrade notes payable	Answer
Net cash provided (used) by operating activities	Answer