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Determining Net Cash Flow from Operating Activities

Presented below are selected balance sheet information and the income statement for Burch Company.

Selected Balance Sheet Information
	Jan. 1	Dec. 31
Cash	$5,700		$17,500
Accounts receivable	8,000		10,500
Inventory	22,400		21,000
Accounts payable	10,000		11,300
Income taxes payable	2,500		1,500

Burch Company
Income Statement
For the year ended December 31
Sales	$250,000
Cost of goods sold	(160,000)
Depreciation expense	(20,800)
Other expenses	(35,000)
Income tax expense	(12,000)
Net income	$22,200

Required:

Compute the net cash flows from operating activities using the indirect method. $fill in the blank 1