The accounting records of kelley corporation Company provided the data below ($ in 000s).

Net income $25,200

Depreciation expense 3,300

Decrease in accounts receivable 2,000

Increase in inventory 4,500

Increase in prepaid insurance 300

Increase in salaries payable 900

Decrease in interest payable 400

Required:

Prepare the Cash Flows from Operating Activities using the Indirect Method and the table provided below:

(NOTE: Your solution should be similar to Illustration 4-14B on page 193 of the textbook.)

Illustration 414B

Indirect Method of Presenting Cash Flows from Operating Activities

Table Summary: Summary

ARLINGTON LAWN CARE Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash Flows from Operating Activities Net income $45 Adjustments for noncash effects: Depreciation expense $8 Changes in operating assets and liabilities: Increase in accounts receivable (12) Increase in prepaid insurance (4) Increase in accrued liabilities 7 Increase in income taxes payable 5 4 Net cash flows from operating activities $49