The condensed single-step income statement for the year ended December 31, 2014, of Conti Chemical Company, a distributor of farm fertilizers and herbicides, follows.

Selected accounts from Conti Chemical's balance sheets for 2014 and 2013 follow.
___________________________________________20142013
Accounts receivable..................................$4,800,000......$3,400,000
Inventory................................................1,680,000.........2,040,000
Prepaid expenses.........................................520,000...........360,000
Accounts payable......................................1,920,000.........1,440,000
Accrued liabilities........................................120,000..........200,000
Income taxes payable....................................280,000.........240,000
Prepare a schedule of cash flows from operating activities using the indirect method.

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Sales 26,000,000 Less: Cost of goods sold 15,200,000 7,600,000 800,000 Operating expenses (including depreciaton of 1,640,000) Income taxes expense Net income 23,600,000 2,400,000