The income statement and selected balance sheet information for Calendars Incorporated for the year ended December 31, 2017, is presented below.

Required:

Prepare the cash flows from operating activities section of the 2017 statement of cash flows using the indirect method.

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Selected Balance Sheet Accounts Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income 2017 2016 $78,000 Merchandise Inventory Accounts Receivable Accounts Payable Salaries Payable Utilities Payable Prepaid Rent Prepaid Insurance $ 490 $ 430 1,800 1,200 450 36,000 1,500 16,000 1,300 10,000 2,500 300 100 50 1,300 1,200 100 90 70 1,000 $10,000