The net income reported on the income statement for the current year was $825,000. Depreciation recorded on equipment and a building amounted to $90,000 for the year. There was a gain on the sale of assets of $12,000.Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

End of Year

Beginning of Year

Change

Cash

$89,000

$96,000

Accounts Receivable (net)

$111,000

$118,400

Inventories

$220,000

$200,000

Prepaid expenses

$12,800

$14,000

Accounts payable (merchandise creditors)

$95,000

$104,000

Salaries payable

$16,000

$13,600

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.For full credit, please label each step.

Step 1Answer

Answer

Step 2Answer

Answer

Step 3Answer

Answer

Step 4aAnswer

Answer

Step 4bAnswer

Answer

Net Cash from Operating Activities