Reading Readiness, Inc. has provided you its list of accounts and balances as of January 31. The Controller has asked you to prepare an Income Statement for the month ended January 31. Account balances were all zero on January 1. Prepare the operating activities section of a Cash Flow statement using the indirect method:

I think I have the Income Statement part, which I've included. I just don't know what to do for the Statement of Cash Flow.

Credits Debits 37,500 28,600 43,300 2,000 69,000 2 3 Account Name 4 Cash 5 Accounts Receivable 6 Inventory 7 Prepaid Rent 8 Trucks 9 Accumulated Dpreciation 10 Accounts Payable 11 Notes Payable 12 Common Stock 13 Retained Earnings 14 Sales Revenue 15 Sales Returns and Allowances 16 Sales Discounts 17 Cost of Goods Sold 18 Wages Expense 19 Rent Expense 20 Depreciation Expense 21 Interest Expense 22 Income Tax Expense 23 Totals 24 20,700 8,800 20,000 75,000 31,800 175,500 4,700 6,000 67,700 25,900 24,000 13,800 1,600 7,700 331,800 $ $ 331,800 25 Required: 26 1. Prepare a multistep income statement that would be used for internal reporting purposes: 27 28 Reading Readiness Inc 29 Income Statement 30 For the Year Ended December 31, 20x1 31 Sales 175,500 32 Less: 33 Sales Returns and Allowances 4,700 34 Sales Discounts 6000 35 Net Sales 164,800 36 Less: Cost of Goods Sold 67,700 37 Gross Profit 97,100 38 Expenses: 39 Wages Expense 25,900 40 Rent Expense 24,000 41 Depreciation Expense 13,800 42 Income from Operations 33,400 43 Less: Interest Expense 1,600 44 Income Before Income Tax Expense 31,800 45 Less: Income Tax Expense 7,700 46 Net Income 24,100 47 50 48 2. Prepare the operating activities section of a Cash Flow statement using the indirect method: 49 Reading Readiness Inc 51 Statement of Cash Flow 52 For the Year Ended December 31, 20x1 53 Cash Flows from Operating Activities 54 Net Income 55 Adjustments to reconcile net 56 Depreciation Expense 57 58 59 60 61 Net cash provided by (used in) 62