Exercise 12-3A Use the indirect method to determine cash flows from operating activities LO 12-1

Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shims Year 2 and Year 1 year-end balance sheets:

Account Title	Year 2			Year 1
Accounts receivable	$	31,414		$	37,697
Prepaid rent		1,523			1,333
Interest receivable		568			454
Accounts payable		10,082			12,098
Salaries payable		3,182			3,636
Unearned revenue		3,291			4,388

The income statement reported a $1,420 gain on the sale of equipment, an $980 loss on the sale of land, and $3,500 of depreciation expense. Net income for the period was $54,652. Required Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

Required Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: Plus: Less: Net cash flow from operating activities