Refer to the data provided in E 21–25 for Clear Transmissions Company.

Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the indirect method.

E 21–25

CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales $1,320 500 Cost of goods sold Gross margin Salaries expense Depreci Amortization expense Interest expense Loss on sale of cash equivalents 820 $220 10 40 456 Income before taxes 364 Income tax expense 182 Net Income $ 182 CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Change $ 2 (12) (10) 6. (6) 5 Cash $102 $100 Accounts receivable 220 232 440 Inventory Accounts payable Salaries payable Interest payable Income tax payable 450 140 134 80 86 25 20 15 10 5