The following information has been obtained from the accounting records of Sandy Shores Enterprises. Prepare the operating section of the statement of cash flows for Sandy Shores Enterprises for the year ended December 31, 2007, using the indirect method. Principal payments on long-term debt $50,000 Increase in accounts payable 24,300 Acquisition of equipment by issuing long-term note payable 70,000 Amortization expense 18,700 Proceeds from sale of investments, not including a $5,100 gain 49,100 Increase in accounts receivable 8,700 Cash payments to purchase plant assets 62,000 Decrease in accrued liabilities 60,300 Payment of cash dividends 64,500 Proceeds from sale of plant assets, not including a $7,400 loss 22,600 Net income 174,100 Depreciation expense 35,500 Proceeds from issuance of common stock 300,000 Increase in inventory 71,400 Bonds payable converted into common stock 130,000 Decrease in prepaid expenses 12,800 Cash balance: December 31, 2006 52,500 Cash balance: December 31, 2007 373,000