(Report cash flows from operating activities indirect method) Smythe transportation began 2016 with accounts receivable, inventory, and prepaid expenses totaling $60,000. At the end of the year, Smythe had a total of $62,000 for these current assets. At the beginning of 2016, Smythe owed current liabilities of $35,000 and at year-end current liabilities totaled $31,000.

Net income for the year was $21,000. Included in net income were a $3,000 gain on the sale of land and depreciation expense of $5,000.

Show how Smythe should report cash flows from operating activities for 2016. Smythe uses the indirect method.