The following information comes from the balance sheets of Moonlight Spa Treatments, Inc., at March 31, 2011 and 2010:

Net income for the year ended March 30, 2011, was $105,700. Included in the operating expenses for the year was depreciation expense of $98,000.

Requirement
Prepare the cash from operating activities section of Moonlight Spa Treatments, Inc.€™s statement of cash flows for the year March 31, 2011. Use the indirectmethod.

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(in thousands) Current assets: 2011 2010 $3,765 Cash Accounts receivable Inventory Prepaid rent $3,005 1,050 1,000 250 $5,305 989 1,500 125 Total current assets $6,379 Current liabilities: Accounts payable Wages payable $1,475 1,700 $3,175 $1,105 1,960 $3,065 Total current liabilities