The following information is available from a company’s 2016 and 2017 financial statements:
comparative balance sheet for current assets and current liabilities:
|
-
| 2017 | 2016 |
|---|---|---|
| Current assets: |
-
|
-
|
| Cash | $62,500 | $72,000 |
| Accounts receivable | $45,000 | $27,000 |
| Merchandise inventory | $122,000 | $126,000 |
| Current liabilities: |
-
|
-
|
| Accounts payable | $28,000 | $26,000 |
| Salaries payable | $8,000 | $10,000 |
The following information was on the company's 2017 income statement:
| Depreciation expense | $15,000 |
| Advertising expense | $14,000 |
| Gain on sale of plant assets | $9,000 |
| Loss on sale of long-term investments | $11,000 |
| Income taxes expense | $28,000 |
| Net income | $85,000 |
Prepare the Cash Flows From Operating Activities section of the statement of cash flows using the indirect method.