The current assets and liabilities sections of the comparative balance sheet of Charron Inc., a private company reporting under ASPE, at October 31 are presented below, along with the income statement:

Instructions

Prepare the operating activities section of the cash flow statement using the indirect method.

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CHARRON INC. Comparative Balance Sheet Accounts 2021 2020 Cash $99,000 $105,000 Accounts receivable 64,000 41,000 Inventory Prepaid expenses Accounts payable Accrued expenses payable Dividends payable Income taxes payable 32,500 46,000 7,500 5,800 43,000 36,000 5,000 8,000 24,000 17,000 6,800 11,800 CHARRON INC. Income Statement Year Ended October 31, 2021 Sales $625,000 Cost of goods sold 390,000 Gross profit 235,000 Operating expenses Depreciation expense Loss on sale of equipment $88,000 23,000 8,000 119,000 Profit before income taxes 116,000 Income taxes 29,000 Profit $ 87,000