The simple income statement for Jack’s Blinds is shown below.

Additional information

1. Accounts receivable increased by $8250 during the year.

2. Accounts payable to suppliers of inventory increased by $3250 during the year.

3. Wages payable decreased by $6250 during the year (including selling expenses).

4. Administrative expenses include depreciation expense of $31 500.

Required

Prepare the net cash flows from operating activities for the year ended 30 June 2020 for Jack’s Blinds using the indirect method.

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JACK'S BLINDS Income Statement for the year ended 30 June 2020 Sales Less: Cost of sales Beginning inventory Purchases Goods available for sale Ending Inventory Cost of sales GROSS PROFIT Expenses Selling expenses $ 68 500 160 000 228 500 $435 000 58 500 170 000 265 000 75 000 Administrative expenses 91 500 166 500 PROFIT $ 98 500