Question: Partial balance sheets and additional information are listed below for Sowell Company. 2027 2026 Sowell Company Partial Balance Sheets as of December 31 Assets Cash
Partial balance sheets and additional information are listed below for Sowell Company.
| 2027 | 2026 | |
|---|---|---|
| Sowell Company | ||
| Partial Balance Sheets | ||
| as of December 31 | ||
| Assets | ||
| Cash | $ 40,000 | $ 20,000 |
| Accounts receivable | 70,000 | 85,000 |
| Inventory | 40,000 | 35,000 |
| Liabilities | ||
| Accounts payable | $ 54,000 | $ 62,000 |
Additional information for 2027:
Net income was $88,000.
Depreciation expense was $19,000.
Required:
Prepare the operating activities section of the statement of cash flows for 2027 using the indirect method.
Note: Amounts to be deducted should be indicated with a minus sign.
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