Reporting Net Cash Flow from Operating Activities

The following information is available for Bernard Corporation for 2013:

Net income	$223,000
Decrease in accounts receivable	8,600
Increase in inventory	18,300
Decrease in prepaid rent	2,100
Increase in salaries payable	4,410
Decrease in income taxes payable	4,270
Increase in notes payable (due 2017)	50,000
Depreciation expense	44,700
Loss on disposal of equipment	11,000

Required:

1. Compute the net cash flows from operating activities using the indirect method.