Exercise $11-7($Algo$)$ Calculate operating activities$-$indirect method $($LO$11-3)$

Hardware Distributors reports net income of $$48,000.$ Included in that number is depreciation expense of $$6,500$ and a loss on the sale of land of $$4,300.$ A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $$18,000,$ a decrease in inventory of $$11,500,$ and an increase in accounts payable of $$38,000.$

Required:

Prepare the operating activities section of the statement of cash flows using the indirect method. $($Amounts to be deducted should be indicated with a minus sign.$)$