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The income statement disclosed the following items for year: Depreciation expense $56,800 Gain on disposal of equipment 33,110 Net income 452,600 The changes in the

The income statement disclosed the following items for year:

Depreciation expense $56,800
Gain on disposal of equipment 33,110
Net income 452,600

The changes in the current asset and liability accounts for the year are as follows:

Increase (Decrease)
Accounts receivable $8,840
Inventory (5,030)
Prepaid insurance (1,890)
Accounts payable (5,990)
Income taxes payable 1,890
Dividends payable 1,320

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Cash flows from operating activities:
Net income $
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation

Gain on disposal of equipment

Changes in current operating assets and liabilities:
Increase in accounts receivable

Decrease in inventory

Decrease in prepaid insurance

Decrease in accounts payable

Increase in income taxes payable

Net cash flow from operating activities

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