Sherman Industries began $2021$ with its accounts receivable, inventory, and prepaid expenses totaling $$45,000$ and its total current liabilities totaling $$37,000.$ At the end of the year, these same current assets totaled $$44,000,$ while its total current liabilities totaled $$42,000.$ Net income for the year was $$89,000.$ Included in net income, were a $$2,000$ gain on the sale of land and depreciation expense of $$8,000.$

Show how Sherman should report cash flows from operating activities for $2021.$ The company uses the indirect method. $($Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.$)$

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by $($used for$)$ operating activities:

$]$

$$