Service Company had net income during the current year of $122,000. The following information was obtained from Services balance sheet:

Accounts receivable	$22,000	increase
Inventory	28,700	increase
Accounts payable	14,240	decrease
Interest payable	3,180	increase
Accumulated depreciation, building	12,340	increase
Accumulated depreciation, equipment	27,800	increase

Additional Information:

1. Equipment with accumulated depreciation of $15,000 was sold during the year.
2. Cash dividends of $36,000 were paid during the year.

Required:

Prepare the net cash flows from operating activities using the indirect method. Use a minus sign to indicate any decreases in cash or cash outflows.

Service Company Net Cash Flows from Operating Activities Using Indirect Method

Cash flows from operating activities:
Decrease in accounts receivableDepreciation expense, buildingDepreciation expense, equipmentIncrease in accounts receivableNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Decrease in interest payableDecrease in inventoryIncrease in accounts payableIncrease in accounts receivableNet incomeDecrease in inventory	$Decrease in inventory
Decrease in accounts receivableDecrease in interest payableDecrease in inventoryIncrease in accounts payableIncrease in inventoryIncrease in inventory	Increase in inventory
Decrease in accounts payableDecrease in accounts receivableDecrease in interest payableDecrease in inventoryIncrease in accounts payableIncrease in accounts payable	Increase in accounts payable
Decrease in accounts receivableDecrease in interest payableDecrease in inventoryIncrease in accounts payableIncrease in interest payableIncrease in interest payable	Increase in interest payable
Decrease in accounts receivableDecrease in interest payableDecrease in inventoryDepreciation expense, buildingIncrease in accounts payableDecrease in interest payable	Decrease in interest payable
Decrease in accounts receivableDecrease in interest payableDecrease in inventoryDepreciation expense, equipmentIncrease in accounts payableIncrease in accounts payable	Increase in accounts payable
Net cash provided by operating activities		$fill in the blank 15

Type or paste question here