Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2.

Swasey Company

Partial Comparative Balance Sheets

At December 31, 20X1 and 20X2

1		20X1	20X2
2	Current Assets
3	Accounts receivable	755,000.00	687,000.00
4	Inventories	305,000.00	325,000.00
5	Current liabilities
6	Wages payable	705,000.00	680,000.00

Swasey Company

Income Statement

For the Year Ended December 31, 20X2

1	Revenues	3,300,000.00
2	Gain on sale of equipment	110,000.00
3	Cost of goods sold	(1,930,000.00)
4	Depreciation expense	(260,000.00)
5	Interest expense	(15,000.00)
6	Net income	$1,205,000.00

	Required:
	Compute operating cash flows using the indirect method.

Statement of Cash Flows Year Ending December 31, 20X2 1 Net income 2 Add (deduct) adjusting items: 3 Decrease in accounts receivable Decrease in wages payable 5 Increase in inventories 6 Depreciation expense 7 Gain on sale of equipment 8 Net cash from operating activities