E23-3B (Preparation of Operating Activities SectionIndirect Method, Periodic Inventory) The income statement of Guesser Company is shown below. GUESSER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012 Sales $755,000 Cost of goods sold 543,000 Gross profit 212,000 Operating expenses Selling expenses $52,000 Administrative expenses 89,000 141,000 Net income $ 71,000 Additional information: 1. Accounts receivable decreased $63,000 during the year. 2. Inventory increased $38,000 during the year. 3. Prepaid expenses increased $12,000 during the year. 4. Accounts payable to increased $25,000 during the year. 5. Accrued expenses payable increased $6,000 during the year. 6. Administrative expenses include depreciation expense of $20,000. Instructions Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Guesser Company, using the indirect method.