Merriweather Corporation began the year with accounts receivable, inventory, and prepaid expenses totaling $ 69,000. At the end of the year, Merriweather had a total of $ 78,000 for these current assets. At the beginning of the year, it owed current liabilities of $ 43,000, and at year- end, current liabilities totaled $ 38,000.
Net income for the year was $ 86,000. Included in net income was a $ 3,000 gain on the sale of land and depreciation expense of $ 10,000.
Show how Merriweather should report cash flows from operating activities for the year. The company uses the indirect method.