The income statement disclosed the following items for 2008:

Depreciation expense .... $ 24,500

Gain on disposal of equipment . 10,200

Net income ......... 186,000

Balances of the current assets and current liability accounts changed between December 31, 2007, and December 31, 2008, as follows:

Accounts receivable ... $4,400

Inventory ........ 2,000*

Prepaid insurance ..... 800*

Accounts payable ..... 2,700*

Income taxes payable ..... 900

Dividends payable ...... 500

*Decrease

Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.