Suppose your company reports $210 of net income and $50 of cash dividends paid, and its comparative balance sheet indicates the following.

Required:

1. Prepare the operating activities section of the statement of cash flows, using the indirect method.

Cash Accounts Receivable Inventory Total Salaries and Wages Payable Common Stock Retained Earnings Total Beginning $ 45 125 295 $ 465 $ 20 150 295 $ 465 Ending $ 255 225 185 $ 665 $ 100 110 455 $ 665 $ 210 (100) Net Income Increase in Accounts Receivable Decrease in Inventory Increase in Salaries and Wages Payable Dividends paid Net Cash Flow from Operating Activities 80 $ 190