The net income reported on an income statement for the current year was $59,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method.

	End	Beginning
Cash	$65,000	$ 70,000
Accounts receivable (net)	70,000	57,000
Inventories	86,000	102,000
Prepaid expenses	4,000	4,500
Accounts payable
(merchandise creditors)	51,000	58,000
Cash dividends payable	4,500	6,500
Salaries payable	6,000	7,500

(a) Statement of Cash Flows
Cash Flows from Operating Activities:
Net Income, per income statement		$59,000
Add:
Deduct:
Net Cash Flows from Operating Activities			$78,000