The condensed single-step income statement for the year ended December 31, 20×9, of Sunderland Chemical Company, a distributor of farm fertilizers and herbicides, appears as follows:

Selected accounts from Sunderland Chemical Company's balance sheets for 20×9 and 20×8 are as follows:

Present in good form a schedule of cash flows from operating activities using the indirect method.

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Sales $13,000,000 Less: Cost of goods sold $7,600,000 Operating expenses (including depreciation of $820,000) Income taxes expense 3,800,000 400,000 11,800,000 $ 1,200,000 Net income 20x9 20x8 Accounts receivable Inventory Prepaid expenses Accounts payable Accrued liabilities $2,400,000 $1,700,000 40,000 1,020,000 180,000 720,000 100,000 260,000 960,000 60,000 Income taxes payable 140,000 120,000