Question 7 27 pts Use the following income statement and information about changes in noncash current assets and liabilities to (1) prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. DAVEY COMPANY INCOME STATEMENT FOR YEAR ENDED DECEMBER 31 Sales $ 880,000 487.000 Cost of goods sold Gross profit $ 393,000 Operating expenses: Salaries expense $ 144,000 Rent expense 76,000 Depreciation expense 45,000 22.000 12.000 Amortization expense Utilities expense Income from operations Loss on sale of equipment 299.000 $ 94,000 14.000 $ 80.000 Income before taxes Income tax expense 28.500 Net income $_51.500 Changes in current asset and current liability accounts for the year that relate to operations follow. $ 32,000 13,500 Increase in accounts receivable Increase in accounts payable (all accounts payable transactions are for inventory) Decrease in prepaid expenses Decrease in merchandise inventory Decrease in long-term notes payable 9.200 14,000 20,000 HTML Editor A. I. E X 3 X X, EE - De VVD 12pt Paragraph