Required:

Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. (List cash outflows as negative amounts.)

The following information pertains to Peak Heights Company: Income Statement for Current Year $93,000 Sales Expenses Cost of goods sold Depreciation expense Salaries expense $51,875 6,000 2,000 69,875 Net income $ 23,125 Current Partial Balance Sheet Accounts receivable Inventory Salaries payable year Prior year $10,500 $ 11,000 13,000 8,000 2,250