Starland's Imported Goods, Ltd. recently issued its annual report for the current year. Its comparative balance sheets for the current year follow.

Prepare the operating activities section of the statement of cash flows for Starland's Imported Goods using the indirect method, assuming that Starland's reports under IFRS. Starland's begins the operating activities section with operating income. It reports interest paid in the financing activities section and interest received in the investing activities section.

Comparative Balance Sheets Starland's Imported Goods, Ltd. Partial Statement of Cash Flow - IFRS (Indirect Method) For the Year Ended December 31 Operating Activities: Starland's Imported Goods, Ltd. Balance Sheets At December 31 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Assets Ending Beginning 35,600 26,100 $ 30,200 Changes in Operating Working Capital Accounts: 19,100 10,600 51,200 41,900 2,300 86,000 $ 131,000 107,000 $ 47,800 74,500 39,400 Cash from Operating Activities Before Taxes 154,800 $ 113,900 240,800 $ 244,900 Net Cash Provided (Used) by Operating Activities Current Assets Cash $ Accounts Receivable - net Merchandise Inventory Prepaid Rent $ Total Current Assets Noncurrent Assets Property, Plant, and Equipment - net $ Indefinite-life Intangible Assets $ Total Noncurrent Assets $ Total Assets Liabilities Current Liabilities Accounts Payable $ Accrued Expenses Income Taxes Payable $ Total Current Liabilities Noncurrent Liabilities $ Notes Payable Total Noncurrent Liabilities $ $ Total Liabilities Shareholders' Equity Common Stock, $1 par value $ Additional Paid-in Capital in Excess of Par- Common Income Statement 20,300 $ 16,600 14,600 18,500 23,000 16,800 51,500 $ 58,300 Starland's Imported Goods, Ltd. Income Statement For the Year Ended December 31 86,200 S 108,100 Sales $ 108,100 137,900 82,600 86,200 $ 137,700 $ Cost of Goods Sold 166,400 $ 55,300 $ 24,500 8,200 15,800 $ 8,600 Gross Profit Selling, General, and Administrative Expenses Depreciation Expense Total Operating Expenses Operating Income $ 32,700 40,900 46,400 30,400 39,500 Retained Earnings $ 22,600 (6,200) $ 103,100 S Total Shareholders' Equity 78,500 $ Interest Expense $ 240,800 $ 244,900 Income before Tax $ Total Liabilities and Shareholders' Equity 16,400 (6,700) Income Tax Expense $ 9,700 Print Done Net Income Cash Collected from Customers Cash Paid for Interest Cash Paid for Merchandise Cash Paid for Income Taxes Cash Paid to Other Suppliers Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Accrued Expenses Decrease in Income Taxes Payable Decrease in Interest Payable Decrease in Inventory Decrease in Prepaid Rent Depreciation Expense Increase in Inventory Increase in Accounts Payable Increase in Accounts Receivable Increase in Accrued Expenses Increase in Income Taxes Payable Increase in Interest Payable Increase in Prepaid Rent Net Income Operating Income