Skysong Company reported net income of $350,000 for the current year. Depreciation recorded on buildings and equipment amounted to $92,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

		End of Year		Beginning of Year
Cash		$25,000		$18,000
Accounts receivable		16,000		35,000
Inventory		57,500		68,500
Prepaid insurance		8,500		5,800
Accounts payable		14,800		18,700
Income taxes payable		910		1,360

Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

SKYSONG COMPANY Partial Statement of Cash Flows
Select an item Decrease in Prepaid InsuranceIncrease in InventoryNet Cash Provided by Operating ActivitiesIncrease in Accounts PayableIncrease in Accounts ReceivableNet Cash Used by Operating ActivitiesDecrease in InventoryIncrease in Income Taxes PayableIncrease in Prepaid InsuranceDecrease in Accounts PayableDepreciation ExpenseNet Income / (Loss)Decrease in Income Taxes PayableDecrease in Accounts Receivable		$Enter a dollar amount
Adjustments to reconcile net income to
Select an opening subsection name Increase in Accounts ReceivableDecrease in Income Taxes PayableNet Cash Provided by Operating ActivitiesIncrease in Income Taxes PayableDecrease in Prepaid InsuranceDecrease in Accounts ReceivableDepreciation ExpenseIncrease in Accounts PayableDecrease in InventoryIncrease in InventoryDecrease in Accounts PayableNet Cash Used by Operating ActivitiesIncrease in Prepaid InsuranceNet Income / (Loss):
Select an item Net Cash Provided by Operating ActivitiesIncrease in InventoryIncrease in Prepaid InsuranceIncrease in Income Taxes PayableDecrease in InventoryDecrease in Accounts ReceivableDecrease in Accounts PayableDepreciation ExpenseNet Cash Used by Operating ActivitiesIncrease in Accounts ReceivableIncrease in Accounts PayableNet Income / (Loss)Decrease in Income Taxes PayableDecrease in Prepaid Insurance		Enter a dollar amount
Select an item Net Cash Provided by Operating ActivitiesDecrease in InventoryIncrease in InventoryNet Income / (Loss)Depreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableDecrease in Accounts ReceivableDecrease in Income Taxes PayableNet Cash Used by Operating ActivitiesDecrease in Prepaid InsuranceIncrease in Prepaid InsuranceDecrease in Accounts PayableIncrease in Income Taxes Payable		Enter a dollar amount
Select an item Increase in Accounts PayableIncrease in Prepaid InsuranceDecrease in Accounts ReceivableIncrease in Accounts ReceivableNet Income / (Loss)Decrease in InventoryDecrease in Accounts PayableIncrease in Income Taxes PayableNet Cash Used by Operating ActivitiesDepreciation ExpenseDecrease in Income Taxes PayableIncrease in InventoryDecrease in Prepaid InsuranceNet Cash Provided by Operating Activities		Enter a dollar amount
Select an item Net Cash Used by Operating ActivitiesDecrease in Prepaid InsuranceNet Income / (Loss)Decrease in Accounts PayableDecrease in Income Taxes PayableIncrease in Accounts ReceivableIncrease in Income Taxes PayableDepreciation ExpenseDecrease in Accounts ReceivableIncrease in InventoryDecrease in InventoryNet Cash Provided by Operating ActivitiesIncrease in Accounts PayableIncrease in Prepaid Insurance		Enter a dollar amount
Select an item Decrease in Income Taxes PayableIncrease in Accounts ReceivableIncrease in InventoryNet Cash Used by Operating ActivitiesDecrease in InventoryDecrease in Accounts PayableNet Income / (Loss)Increase in Prepaid InsuranceIncrease in Accounts PayableDepreciation ExpenseIncrease in Income Taxes PayableDecrease in Accounts ReceivableDecrease in Prepaid InsuranceNet Cash Provided by Operating Activities		Enter a dollar amount
Select an item Increase in Prepaid InsuranceDecrease in Accounts PayableDecrease in InventoryDecrease in Prepaid InsuranceNet Cash Provided by Operating ActivitiesNet Cash Used by Operating ActivitiesDecrease in Accounts ReceivableIncrease in Income Taxes PayableIncrease in InventoryDecrease in Income Taxes PayableDepreciation ExpenseIncrease in Accounts ReceivableIncrease in Accounts PayableNet Income / (Loss)		Enter a dollar amount
Select a closing section name Decrease in Prepaid InsuranceDecrease in Accounts PayableDecrease in Income Taxes PayableIncrease in InventoryIncrease in Income Taxes PayableIncrease in Accounts PayableIncrease in Accounts ReceivableDecrease in InventoryNet Cash Used by Operating ActivitiesNet Income / (Loss)Increase in Prepaid InsuranceDecrease in Accounts ReceivableNet Cash Provided by Operating ActivitiesDepreciation Expense		$Enter a total amount for this section