The net income reported on the income statement for the current year was $75,000. Depreciation recorded on store equipment for the year amounted to $22,500. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

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

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Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable End of Year $46,700 28,800 54,800 4,000 40,500 25,500 Beginning of Year $43,000 32,500 49,300 3,600 42,400 22,500