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Green Brands, Inc. (GBI), presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBIs 2017 and 2016 year-end balance sheets.

Account Title	2017			2016
Accounts receivable	$	20,500		$	27,000
Merchandise inventory		57,300			50,600
Prepaid insurance		17,900			25,600
Accounts payable		23,900			19,100
Salaries payable		5,000			3,950
Unearned service revenue		650			2,750

The 2017 income statement is shown below:

Income Statement

Sales

$

619,000

Cost of goods sold

(376,000

)

Gross margin

243,000

Service revenue

4,400

Insurance expense

(39,000

)

Salaries expense

(140,000

)

Depreciation expense

(6,000

)

Operating income

62,400

Gain on sale of equipment

3,300

Net income

$

65,700

b.	Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)