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.

	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

Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

Prepare the cash flows from operating activities section of a statement of cash flows using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

Statement of Cash Flows (partial)

1	Cash flows from operating activities:
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3	Adjustments to reconcile net income to net cash flow from operating activities:
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6	Changes in current operating assets and liabilities:
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