Use the balance sheets and income statement given below to answer the following:

ORWELL, INC. Comparative Balance Sheets December 31, 2011
		2011				2010
Assets
Cash	$	95,800			$	25,000
Accounts receivable, net		42,000				52,000
Inventory		86,800				96,800
Prepaid expenses		6,400				5,200
Furniture		110,000				120,000
Accum. depreciation%u2014Furniture		(18,000	)			(10,000	)
Total assets	$	323,000			$	289,000
Liabilities and Equity
Accounts payable	$	16,000			$	22,000
Wages payable		10,000				6,000
Income taxes payable		2,400				3,600
Notes payable (long-term)		30,000				70,000
Common stock, $5 par value		230,000				180,000
Retained earnings		34,600				7,400
Total liabilities and equity	$	323,000			$	289,000

ORWELL, INC. Income Statement For Year Ended December 31, 2011
Sales				$	468,000
Cost of goods sold					312,000
Gross profit					156,000
Operating expenses
Depreciation expense	$	38,600
Other expenses		57,000			95,600
Income before taxes					60,400
Income taxes expense					24,600
Net income				$	35,800

Use the indirect method to prepare the cash provided or used from operating activities section only of the statement of cash flows for this company.