The net income reported on the income statement for the current year was $800,000. Depreciation recorded on equipment and a building amounted to $90,000 for the year. There was a gain on the sale of assets of $3,500.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 1 Answer

Answer

Step 2 Answer

Answer

Step 3 Answer

Answer

Step 4a Answer

Answer

Step 4b Answer

Answer

Net Cash from Operating Activities Answer