The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount to $62,500 for the year. Balances of the current asset and current liabilities accounts at the beginning and end of the year are as follows:

	End of Year	Beginning of Year	Change
Cash	$56,000	$59,500
Accounts receivable (net)	71,000	73,400
Inventories	140,000	126,500
Prepaid expenses	7,800	8,400
Accounts payable (merchandise creditors)	62,600	66,400
Salaries payable	9,000	8,250

Required:

Prepare the Cash flows for Operating Activities section of the statement of cash flows, using the indirect method. Follow format in exhibit 4 (page 724).

Remember to show all your work and calculations.