C

Cash Flows from Operating ActivitiesIndirect Method

Staley Inc. reported the following data:

Net income	$402,500
Depreciation expense	61,100
Loss on disposal of equipment	34,000
Increase in accounts receivable	15,700
Increase in accounts payable	10,000

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Staley Inc. Statement of Cash Flows (partial)

Cash flows from operating activities:
DepreciationIncrease in accounts receivableNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flow from operating activities:
DepreciationIncrease in accounts payableIncrease in accounts receivableDepreciation	Depreciation
Increase in accounts payableIncrease in accounts receivableLoss on disposal of equipmentLoss on disposal of equipment	Loss on disposal of equipment
Changes in current operating assets and liabilities:
DepreciationIncrease in accounts receivableLoss on disposal of equipmentIncrease in accounts receivable	Increase in accounts receivable
DepreciationIncrease in accounts payableLoss on disposal of equipmentIncrease in accounts payable	Increase in accounts payable
Net cash flow from operating activities		$fill in the blank 11