Presented below are selected balance sheet information and the income statement for Burch Company.
Selected Balance Sheet Information

Burch Company
Income Statement
For the year ended December 31, 2019
Sales ......................................... $ 250,000
Cost of goods sold ......................... (160,000)
Depreciation expense ....................... (15,000)
Other expenses .............................. (35,000)
Income tax expense ........................ (12,000)
Net income .................................. $ 28,000
Required:
Compute the net cash flows from operating activities using the indirect method?

Dec. 31, 2018 Dec. 31, 2019 Cash Accounts receivable $17,500 $20,000 18,000 15,000 1,000 21,000 10,000 2,500 Inventory Accounts payable Income taxes payable