Using the following information, prepare the cash flows from operating activities (indirect method) section of the statement of cash flows.

Net income (accrual basis) $25,000

Depreciation expense 3,000

Increase in salaries payable 500

Increase in accounts receivable 900

Decrease in inventory 1,150

Patent amortization expense 100

Decrease in long term liabilities 5,000

Sale of common stock for cash 12,500

Amortization of discount on bonds payable 150