Question 4: (20 marks)

1. A partial balance sheet for orange company is presented below.

Orange Company Income statement For the year Ended December 31, 2019
Sales		$100,000
Cost of goods sold		(55,000)
Gross Profit		$45,000
Operating expenses:
Salaries	$10,000
Depreciation expense	4,000
Miscellaneous	1,000	(15,000)
Net Income		$30,000

Orange Company Balance Sheet As at 31st December 2019
2018	2019
$7,000	$5,000	Cash
1,200	1,500	Account receivable
2,500	2,000	Inventories
250	500	Prepaid expenses
2,500	4,500	Furniture
10,000	7,000	Accounts Payable
900	500	Salaries Payable
1,500	2,000	Short term Bank Loan

Required: Prepare the operating activities section of the statement of cash flows using indirect method.