Problem $11-3$A $($Algo$)$ Calculate operating activities$$indirect method $($LO$11-3)$

Portions of the financial statements for Petoskey Technologies are provided below.

PETOSKEY TECHNOLOGIES

Income Statement

For the Year Ended December $31,2024$

Net sales $$297,000$

Expenses:

Cost of goods sold $$177,000$

Operating expenses $52,000$

Depreciation expense $15,200$

Income tax expense $18,000$

Total expenses $262,200$

Net income $ $34,800$

PETOSKEY TECHNOLOGIES

Selected Balance Sheet Data

December $31,2024,$ compared to December $31,2023$

Decrease in accounts receivable $ $5,200$

Increase in inventory $12,200$

Decrease in prepaid rent $8,200$

Increase in salaries payable $4,200$

Decrease in accounts payable $7,200$

Increase in income tax payable $16,800$

Required:

Prepare the operating activities section of the statement of cash flows for Petoskey Technologies using the indirect method. $($Amounts to be deducted should be indicated with a minus sign.$)$