The following items are relevant to the preparation of a statement of cash flows for Maxwell Inc.

$1.$ Net loss for the year was $$20,000.$ Depreciation expense was $$50,000.$

$2.$ Wrote off a $$4,000$ customer account. During the year, gross accounts receivable increased $$100,000,$ and the allowance for doubtful accounts increased $$10,000.$ Total sales of $$600,000$ are all on account.

$3.$ Pension expense is $$100,000$ while cash funding for the pension plan was $$80,000.$

$4.$ Deferred tax liability increased $$80,000,$ income taxes payable decreased $$20,000,$ and income tax expense was $$220,000.$

$5.$ $$20,000$ of interest was capitalized. Interest expense recognized is $$100,000.$ There is no change in interest payable.

$6.$ Sold short$-$term investments $($not held in a trading account$)$ at a $$4,000$ gain, proceeds $$16,000.$

$7.$ Merchandise inventory decreased by $$10,000,$ trade accounts payable decreased by $$5,000,$ and salaries payable increased by $$14,000.$

Required

Prepare the reconciliation of net income to cash flow from operations for inclusion in the statement of cash flows $($indirect method$).$

Note: If an item is not included in the operating activities section, leave the answer blank $($zero$).$

Cash flows from Operating Activities Net loss

Adjustments: Depreciation expense

Pension expense

Income tax expense

Capitalized interest

Gain on sale of short$-$term investments

Increase in accounts receivable

Increase in deferred tax liability

Decrease in income taxes payable

Decrease in merchandise inventory

Decrease in accounts payable

Increase in salaries payable

Net cash provided $($used$)$ by operating activities