Reference no: EM131756433

Question - Selected balance sheet information and the income statement for Fountainhead Corporation for the current year are presented below.

Selected Balance Sheet Accounts

Prior Year

Prior Year Current Year

Accounts Receivable $17,800  $12,000  

Merchandise Inventory  24,000   26,400  

Prepaid Rent  1,400   0  

Accounts Payable  13,400   17,200  

Salaries and Wages Payable 2,800   4,200 

Income Statement 

Sales Revenue $360,000  

Expenses:       

Cost of Goods Sold 212,000     

Depreciation Expense 24,000    

 Salaries Expense 36,000     

Rent Expense 14,400     

Insurance Expense 14,400    

 Interest Expense 13,200     

Utilities Expense 12,000  

Net Income$34,000  

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