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 $ $117,000$ $ $92,500$

Inventory $83,200105,000$

Prepaid expenses $49,40042,500$

Totals $ $249,600$ $ $240,000$

Accounts payable $ $75,000$ $ $57,500$

Salaries payable $22,50032,500$

Interest payable $42,50035,000$

Totals $ $140,000$ $ $125,000$

During $2023,$ Kid$-$game Software Inc. reported depreciation expense of $$47,000.$ All purchases and sales are on account. Profit for $2023$ was $$243,000.$

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.$)$