The income statement for the Mendelin Corporation is as follows:

Revenues		$ 400,000
Less: Cost of goods sold:
Beginning inventory	$ 50,000
Purchases	179,000
Ending inventory	(36,000)	(193,000)
Less: Patent amortization		(18,000)
Advertising		(12,000)
Depreciation expense		(57,000)
Wages expense		(29,000)
Insurance expense		(10,200)
Bad debt expense		(6,200)
Interest expense		(8,000)
Net income		$ 66,600

Additional information is as follows:

A.	Interest expense includes $1,700 of discount amortization.
B.	The prepaid insurance expense account decreased by $2,100 during the year.
C.	Wages payable decreased by $2,500 during the year.
D.	Accounts payable increased by $7,700 (this account is for purchase of merchandise only).
E.	Accounts receivable increased by $11,500 (net of allowance for doubtful accounts).
F.	Inventory decreased by $14,500.

Required:

Prepare a schedule of operating cash flows using the indirect method.

Prepare a schedule of operating cash flows 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.)

Mendelin Corporation

Operating Cash Flows Using the Indirect Method

1	Cash flows from operating activities:
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3	Add (deduct) adjusting items:
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