Additional Information:

Operating expenses include $$50,000$ of depreciation expense and a $$45,000$ impairment loss on

property, plant and equipment.

Accounts Receivable decreased by $$105,000$

Merchandise Inventory decreased by $$54,000$

Prepaid expenses related to operating expenses increased by $$35,000$

Accounts Payable to suppliers of merchandise increased by $$120,000$

Accrued liabilities related to operating expenses decreased by $$41,000$

Interest Payable increased by $$52,000$

Income tax payable increased by $$44,000$

Required:

Prepare the operating activities section of the statement of cash flows using the Indirect Method.