Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.

The income statement disclosed the following items for 2015:

Depreciation expense	$36,000
Gain on disposal of equipment	21,000
Net income	$265,500

Balances of the current assets and current liabilities accounts changed between December 31, 2014 and December 31, 2015, as follows:

Increase in accounts receivable	$6,800
Decrease in inventory	3,200
Increase in prepaid insurance	1,200
Decrease in account payable	3,800
Increase in income taxes payable	1,200
Increase in dividends payable	850