Preparing the Operating Activities Section The following items are relevant to the preparation of a statement of cash flows for Maxwell Inc. 1. Net loss for the year was $36,000. Depreciation expense was $90,000. 3. Pension expense is $180,000 while funding for the pension plan was $144,000. 4. Deferred tax liability increased $144,000, income taxes payable decreased $36,000, and income tax expense was $396,000. 5. $36,000 of interest was capitalized. Interest expense recognized is $180,000. There is no change in interest payable. 6. Sold short-term investments (not held in a trading account) at a $7,200 gain, proceeds $28,800. 7. Merchandise inventory decreased by $18,000, accounts payable decreased by $9,000, and salaries payable increased by $25,200. Required Prepare the reconciliation of net income with cash flow from operations for inclusion in the statement of cash flows (indirect method). Note: If an item is not included in the operating activities section, leave the answer blank (zero)