Prepare the statement of cash flows from operating activities using the indirect method. The company had the following information available:

Net Income $ 500,000 Depreciation expense for the year was $ 115,000 Sold equipment $1,000,000 Issued common stock $1,500,000 Purchased treasury stock $500,000 Purchased equipment $750,000 Decrease in accounts receivable $ 25,000 Increase in prepaid insurance $ 82,000 Decrease in accounts payable $ 50,000 Increase in taxes payable $ 20,000 Decrease in interest payable $ 5,000 Gain on equipment sold $ 650,000 Issued bonds at 7% $ 550,000