57 Use the following income statement and information about selected current assets and current liabilities to calculate the net cash provided or used by operating activities under the indirect method. Sales Cost of goods sold Gross profit Operating expenses Wages expense Income Statement For Year Ended December 31, Year 2 Depreciation expense Rent expense Interest expense Loss on sale of land i Net income Accounts receivable Inventory Prepaid rent Accounts payable Wages payable Interest payable $ 25,600 7,600 7,800 2,500 Selected beginning and ending balances of current asset and current liability accounts, all of which relate to operating activities, follow. Depreciation expense Gain on sale of equipment Balance Changes in current assets and current liabilities Decrease in accounts receivable Increase in accounts payable Increase in inventory December 31, Year 21 $ 28,800 23,500 670 28,300 11,600 428 $ 198,000 107,000 $91,000 Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash 43,500 $ 47,500 4,100 $ 43,400 December 31, Year 1 $ 24,600 20,600 3460 26,600 9,600 310 0