Incredible America Transportation (IAT) began 2012 with accounts receivable, inventory, and prepaid expenses totaling $48,000. At the end of the year, IAT had a total of $49,000 for these current assets. At the beginning of 2012, IAT owed current liabilities of $36,000, and at year-end current liabilities totaled $40,000.
Net income for the year was $81,000. Included in net income were a $9,000 loss on the sale of land and depreciation expense of $4,000.
Show how IAT should report cash flows from operating activities for 2012. IAT uses the indirect method.