Sales	$1,300,000
cost of goods sold	820,000
Gross margin	480,000
Selling and Administrative expenses	178,000
Depreciation expenses	42,000
Operating income	260,000
Gain on sale of equipment	3,200
Income before taxes	263,200
Income tax expense	92,120
net income	171,080

Current assets:	2008	2007
cash	$80,000	$64,000
accts receivable	20,000	16,000
merchandise inventory	25,000	32,000
prepaid expenses	8,000	5,000
Current liabilities:
Accts payable	9,000	7,000
Income tax payable	4,400	3,000

Required: Using indirect method, prepare the operating activities section of the statement of cash flows for the year ended December 31, 2008.