The income statement revealed the following items for the current year:

depreciation expense	$ 36,000
Gain from disposal of equipment	21,000
Net Income	317,500

The balances of the current asset and current liability accounts varied between December 31 of last year and December 31 of this year, as follows:

Increase in accounts receivable	$5,600
decrease in inventory	3,200
Decrease in prepaid insurance	1200
Decrease in accounts payable	3.800
Increase in income taxes payable	1200
Increase in dividends payable	850

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

Answer rating: 100% (QA)

To prepare the operating activities section of the statement of cash flows using the indirect method ... View the full answer