Problem 4 Cash flows from operating activities-indirect method The data below are taken from the financial statements of the Rutherford Corporation: Income Statement: 2009 Net income $840,000 170,000 30,000 110,000 Depreciation expense Amortization of patent Gain on sale of equipment Balance Sheet: 12/31/09 12/31/08 Accounts receivable $710,000 840,000 30,000 660,000 430,000 $680,000 800,000 35,000 630,000 440,000 Inventory Prepaid expenses Accounts payable Accrued expenses payable Complete the partial statement of cash flows for the year ended December 31, 2009, showing the computation of net cash flows from operating activities by the indirect method RUTHORFORD CORPORATION Partial Statement of Cash Flows For the Year Ended December 31,2009 Cash flows from operating activities (indirect method): Net income Add Subtotal S Less Net cash flows from operating activities