Sowell Company Partial Balance Sheets as of December 31
Assets	2016	2015
Cash	$40,000	$20,000
Accounts receivable	70,000	85,000
Inventory	40,000	35,000
Liabilities
Accounts payable	$54,000	$62,000

Additional information for 2016: Net income was $88,000. Depreciation expense was $19,000. Required: Prepare the operating activities section of the statement of cash flows for 2016 using the indirect method.

Cash flows from operating activities:
Net income
Adjustment for noncash effects:
Depreciation expense
Decrease in accounts receivable
Increase in inventory
Decrease in accounts payable
Net cash flows from operating activities	$109,000

The correct answer should be $109,000