Hello,

Could you please help me preparing the operating activities section of the statement of Cash Flow - Indirect Method?

Income Statement Information ended year December 31, 2016:

Service revenue $960,000

Operating expenses (excluding depreciation) $586,000

Depreciation expense $70,000

Gain on sale of equipment $22,000

Income before income taxes $326,000

Income tax expense $100,000

Net income $226,000

Balance Sheet information:

2020 2019

Accounts receivable $32,000 $54,000

Accounts payable 51,000 31,000

Income taxes payable 6,000 8,500

Equipment 200,000 300,000

Inventory 100,000 90,000

(Accounts payable pertains to operating expenses.)

Prepare the operating activities section of the statement of cash flows using the indirect method, in good form.

Thank you!