Omicron Inc. reported net income of $120,000 for 20Y2. In addition, the income statement reported $12,000 of depreciation expense and a $15,000 loss on the disposal of equipment. The current operating assets and liabilities from the company’s comparative balance sheet are as follows:

Prepare the “Cash flows from operating activities” section of the statement of cash flows, using the indirect method.

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Accounts receivable Accounts payable 12/31/20Y2 $18,240 11,200 12/31/20Y1 $13,240 13,200 Increase (Decrease) $5,000 (2,000)