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

Using this information, prepare a partial statement of cash flows for the year ended December 31, 2011, showing the computation of net cash flows from operating activities by the indirectmethod.

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Dec. 31 2011 Jan. 1 2011 Income statement: Net Income Depreciation Expense. Amortization of Intangible Assets .* . .. Gain on Sale of Plant Assets.. Loss on Sale of Investments . . . . 40,000 90,000 35,000 Balance sheet: Accounts Receivable Inventory. Prepaid Expenses... Accounts Payable (to merchandise suppliers) Accrued Expenses Payable $335,000 $380,000 503,000 575,000 10,000 379,000 410,000 180,000 155,000 22,000 . - . . . .