The account balances for the non$-$cash current assets and current liabilities of Kid$-$game Software Inc. are as follows:

December $31$

$20232022$

Accounts receivable $ $132,000$ $ $111,400$

Inventory $93,800126,600$

Prepaid expenses $55,60051,200$

Totals $ $281,400$ $ $289,200$

Accounts payable $ $90,000$ $ $69,200$

Salaries payable $27,00039,400$

Interest payable $51,20042,200$

Totals $ $168,200$ $ $150,800$

During $2023,$ Kid$-$game Software Inc. reported depreciation expense of $$62,000.$ All purchases and sales are on account. Profit for $2023$ was $$258,000.$

Required:

$1.$ Prepare the operating activities section of the statement of cash flows using the indirect method. $($List any deduction in cash and cash outflows as negative amounts.$)$