The net income reported on an income statement for the current year was $50,000. Depreciation recorded on fixed assets for the year was $20,000. 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.

Ending Beginning Cash $60,000 $ 70,000 Accounts Rec 71,000 63,500 Inventories 96,000 105,000 Prepaid expenses 2,900 3,500 Accounts payable 72,500 77,500 Salaries payable 4,000 5,000