The income statement for Piura Merchandising Corporation is as follows:

Piura Merchandising Corporation
Income Statement
For the Year Ended December 31, 20X1
Sales		$ 1,480,000
Cost of goods sold
Beginning inventory	$ 425,000
Purchases	770,000
Ending inventory	(260,000)
		(935,000)
Depreciation expense		(66,000)
Amortization of patent		(20,000)
Wages expense		(71,000)
Insurance expense		(39,500)
Income before taxes		$ 348,500
Income taxes (all current)		(103,500)
Net income		$ 245,000

Other information is as follows:

A.	Accounts payable decreased by $19,000 during the year.
B.	Accounts receivable increased by $23,500.
C.	All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $10,500.
D.	Prepaid insurance increased by $24,000 during the year.

Prepare a schedule that provides the operating cash flows for the year using the indirect method. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

Piura Merchandising Corporation

Operating Cash Flows Using the Indirect Method

1	Cash flows from operating activities:
2
3	Add (deduct) adjusting items:
4
5
6
7
8
9
10
11

Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.

Amount Descriptions
Amortization of patent
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventory
Decrease in prepaid insurance
Decrease in wages payable
Depreciation expense
Increase in accounts payable
Increase in accounts receivable
Increase in inventory
Increase in prepaid insurance
Increase in wages payable
Less cost of goods sold
Net cash from operating activities
Net income
Net loss