The net income reported on the income statement for the current year was $58,000. Depreciation recorded on fixed assets for the year was $24,000. In addition, equipment with an original cost of $130,000 and accumulated depreciation of $115,000 on the date of the sale, was sold for $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. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. End Beginning Cash $65,000 $ 70,000 Accounts receivable (net) 70,000 63,000 Inventories 85,000 102,000 Prepaid expenses 4,000 4,500 Accounts payable (merchandise creditors) 50,000 58,000 Cash dividends payable 4,500 6,500 Salaries payable 6,000 7,500 Operating Activities Section Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of equipment 58,000 24,000 5,000