Reference no: EM13579837

The net income reported on an income statement for the current year was $58,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current assets and current liability accounts at the end and beginning of the year are listed below. Prepare the cash flows from operating activites section of a statement of cash flows using the indirect method.

                                                                     End    Beginning
        Cash                                                               $65,000    $70,000

• Accounts Receivable (net)                                  70,000 63,000
• Inventories 85,000    102,000
• Prepaid Expenses    4,000                                    4,500
• Accounts Payable
• (merchandise creditors)                                       50,000                58,000
• Cash dividends Payable                                       4,500                  6,500
• Salaries Payable