Calculate cash from operating activities using the indirect method. (LO 5, 6)

Brass Company reported net income of \(\$ 290,000\) for 2007 . The company also reported depreciation expense of \(\$ 70,000\) and a gain of \(\$ 3,000\) on the sale of equipment. The comparative balance sheet shows a decrease in accounts receivable of \(\$ 8,000\) for the year, a \(\$ 5,000\) decrease in accounts payable, and a \(\$ 1,700\) increase in prepaid expenses. Prepare the cash from operating activities section of the statement of cash flows for 2007 using the indirect method.