Morgan Industries uses the indirect method to prepare the operating activities section of its statement of cash flows. Selected information for the fiscal year ended May 31, 2022, appears below.

Prepare the operating activities section of its statement of cash flows with a proper heading (name of company, name of financial report, date or time period) using the information below.

Net income	$600,000
Accounts receivable decrease	28,000
Inventory decrease	35,000
Gain on sale of equipment	15,000
Accounts payable increase	40,000
Income tax payable increase	25,000
Depreciation expense	200,000