The following account balances for the noncash current assets and current liabilities of Suffolk Company are available:

Net income for 2017 is $40,000. Depreciation expense is $20,000. Assume that all sales and all purchases are on account.
Required
1. Prepare the Operating Activities section of the statement of cash flows using the indirect method.
2. Provide a brief explanation as to why cash flow from operating activities is more or less than the net income of the period.

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December 31 2017 $43,000 30,000 17,000 $90,000 $26,000 2016 $35,000 40,000 15,000 $90,000 $19,000 10,000 12,000 $41,000 Accounts receivable Prepaid rent Accounts payable Income taxes payable Interest payable 6,000 15,000 $47,000