Prepare a statement of cash flows using the indirect method and interpret information in the statement of cash flows.

Problem 13-10 The following are line items included in the 2018 statement of cash flows prepared by Oak Ridge's Clothing Company: Depreciation expense Increase in accounts receivable Increase in accounts payable Increase in accrued salaries payable Increase in inventories Gain on disposal of long-term assets Increase in income taxes payable Net income 5,840 1,280 12,300 3,900 12,000 140 2,350 15,700 Prepare the operating cash flow section of Oak Ridge's statement of cash flows using the indirect method. (Enter amounts that decrease cash flow either with a negative sign preceding the number, e.g. -15,000 or parenthesis e.g. (15,000).) Oak Ridge's Clothing Company Partial Statement of Cash flows Indirect method Operating activities