The statement of income disclosed the following items for 2015:
Depreciation expense ............................... $ 32,000
Gain on disposal of equipment ..................... 20,500
Net income ............................................ 319,500
Balances of the current asset and current liability accounts changed between December 31, 2014, and December 31, 2015, as follows:
Accounts receivable ................................. $4,500
Inventories ............................................ 2,700*
Prepaid insurance .................................... 1,100*
Accounts payable .................................... 3,200*
Income taxes payable ................................ 1,200
Dividends payable ................................... 850
*Decrease
Prepare the Cash Flows from Operating Activities section of the statement of cash flows using the indirect method.