Preparing the Operating Activities Section The following items are relevant to the preparation of a statement of cash flows for Maxwell Inc. 1. Net loss for the year was $12,000. Depreciation expense was $30,000. 2. Wrote off a $2,400 customer account. During the year, gross accounts receivable increased $60,000, and the allowance for doubtful accounts increased $6,000. All sales of $360,000 are on account. 3. Pension expense is $60,000 while funding for the pension plan was $48,000. 4. Deferred tax liability increased $48,000, income taxes payable decreased $12,000, and income tax expense was $132,000. 5. $12,000 of interest was capitalized. Interest expense recognized is $60,000. There is no change in interest payable. 6. Sold short-term investments (not held in a trading account) at a $2,400 gain, proceeds $9,600. 7. Merchandise inventory decreased by $6,000, accounts payable decreased by $3,000, and salaries payable increased by $8,400. Required Prepare the reconciliation of net income with cash flow from operations for inclusion in the statement of cash flows (indirect method). Note: If an item is not included in the operating activities section, leave the answer blank (zero)