Fitness Elite Corporation had the following information available for 2012:

Fitness Elite Corporation reported net income of $275,000 for the year. Depreciation expense, included on the income statement, was $35,400.

Requirement
Assume that the preceding information is all the information relevant to the statement of cash flows. Use the indirect method to prepare the cash flows from operating activities section of Fitness Elite Corporation€™s statement of cash flows for the year ended December 31,2012.

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Accounts receivable Prepaid insurance Inventony January 1 $160,000 96,000 152,000 December 31 $152,000 52,000 120,000