The following data are taken from the income statement and balance sheet of Freeman Machinery, Inc.:

Using this information, prepare a partial statement of cash flows for the year ended December 31, 2015, showing the computation of net cash flows from operating activities by the indirect method.

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Dec. 31, 2015 Jan. 1, 2015 Income statement: $385,000 Net Income Depreciation Expense Amortization of Intangible Assets 135,000 40,000 Gain on Sale of Plant Assets 90,000 Loss on Sale of Investments 35,000 Balance sheet: Accounts Receivable . Inventory .... Prepaid Expenses $335,000 $380,000 503,000 575,000 22,000 13,000 Accounts Payable (to merchandise suppliers) . 379,000 410,000 Accrued Expenses Payable .... 180,000 155,000