Salud Company reports the following information.

Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income$ 415,000Accounts receivable increase$ 40,800Depreciation expense86,500Prepaid expenses decrease12,900Gain on sale of machinery24,500Accounts payable increase7,400 Wages payable decrease2,500

Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.

Note: Amounts to be deducted should be indicated with a minus sign.