Murray Company has provided the following partial comparative balance sheets and the income statement for 2010.

Required:
Compute operating cash flows by using the indirectmethod.

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Murray Company Comparative Balance Sheets For the Years Ended December 31, 2009 and 2010 2009 2010 Current assets: Accounts receivable Inventories Current liabilities Wages payable $350,000 125,000 $281,250 150,000 $300,000 $237,500 Murray Company Income Statement For the Year Ended December 31, 2010 Revenues Gain on sale of equipment Less: Cost of goods sold Less: Depreciation expense Less: Interest expense $1,200,000 50,000 (650,000) 125,000) Net income S 450,000