PB16-2 Computing Cash Flows from Operating Activities (Indirect Method) The income statement and selected balance sheet information for Calendars Incorporated for the year ended December 31, 2011, follow.

Income Statement Sales revenue $49,600 Expenses Cost of goods sold 21,000 Depreciation expense 2,000 Salaries expense 9,000 Rent expense 4,500 Insurance expense 1,900 Interest expense 1,800 Utilities expense 1,400 Loss on sale of land 1,000 Net income $ 7,000 Selected Balance Sheet Accounts 2011 2010 Accounts receivable $560 $580 Merchandise inventory 990 770 Accounts payable 440 460 Salaries payable 100 70 Utilities payable 20 15 Prepaid rent 25 20 Prepaid insurance 25 28 Required: Prepare the Cash Flows from Operating Activities section of the 2011 statement of cash flows using the indirect method.