The following data are taken from the income statement and balance sheet of Freeman Machinery, Inc.

Using this information, prepare a partial statement of cash flows for the year ended December 31, 2021, showing the computation of net cash flows from operating activities by the indirect method.

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Income statement: Net Income Depreciation Expense... Amortization of Intangible Assets Gain on Sale of Plant Assets Loss on Sale of Investments. Balance sheet: Accounts Receivable. Inventory Prepaid Expenses Accounts Payable (to merchandise suppliers).. Accrued Expenses Payable Dec. 31, 2021 $385,000 135,000 40,000 90,000 35,000 $335,000 $380,000 503,000 575,000 22,000 13,000 379,000 410,000 180,000 155,000 Jan. 1, 2021