Beautiful America Transportation (BAT) began 2010 with accounts receivable, inventory, and prepaid expenses totaling $58,000. At the end of the year, BAT had a total of $55,000 for these current assets. At the beginning of 2010, BAT owed current liabilities of $20,000, and at year-end current liabilities totaled $32,000.
Net income for the year was $12,000. Included in net income were a $2,000 loss on the sale of land and depreciation expense of $8,000.
Show how BAT should report cash flows from operating activities for 2010. BAT uses the indirect method.