The following account balances for the noncash current assets and current liabilities of Suffolk Company are available:

	December 31
	2017		2016
Accounts receivable	$43,260		$34,940
Inventory	29,860		40,010
Prepaid rent	16,550		15,230
Totals	$89,670		$90,180
Accounts payable	$26,410		$19,020
Income taxes payable	5,730		9,700
Interest payable	14,500		12,250
Totals	$46,640		$40,970

Net income for 2017 is $38,690. Depreciation expense is $18,220. Assume that all sales and all purchases are on account.

Required:

1. Prepare the Operating Activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash.

Suffolk Company
Partial Statement of Cash Flows
For the Year Ended December 31, 2017
Cash Provided by Operating Activities
Net income	$
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense
Increase in accounts receivable
Decrease in inventory
Increase in prepaid rent
Increase in accounts payable
Decrease in income taxes payable
Increase in interest payable
Net cash inflow from operating activities	$

2. Net cash inflow from operating activities is $______ and the primary reason why it is higher than net income is depreciation . Other reasons for the higher amount of net cash inflow from operating activities are increase in accounts payable and decrease in interest payable .