Selected balance sheet information and the income statement for Fountainhead Corporation for the current year are presented below.

Selected Balance Sheet Accounts
	Prior Year			Current Year
Accounts Receivable	$	23,400		$	16,000
Merchandise Inventory		32,000			35,200
Prepaid Rent		2,200			0
Accounts Payable		18,200			23,600
Salaries and Wages Payable		4,400			6,600

Income Statement
Sales Revenue	$	480,000
Expenses:
Cost of Goods Sold		276,000
Depreciation Expense		32,000
Salaries Expense		48,000
Rent Expense		19,200
Insurance Expense		19,200
Interest Expense		17,600
Utilities Expense		16,000
Net Income	$	52,000

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Enter any deductions and cash outflows as a negative value.)

Fountain Head Corporation

Cash Flows From Operating Activities

Net Loss/Net Income?
Adjustments to reconcile net income to net cash provided by operating activities:
Changes in current assets and current liabilities:
Net cash provided by (used in) operating activities/ Net cash used in operating activities?:

The options for cash flows are: Accounts Payable, Accounts Receivable, Depreciation, Gain on Sale of Equipment, Inventories, Prepaid Rent, and Salaries and Wages Payable