Using the information below, prepare a 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.

December 31, 2009 Jan. 1, 2009

Income statement:

Net Income $385,000 Depreciation Expense 125,000 Amortization of Intangible Assets 40,000 Gain on Sale of Plant Assets 90,000 Loss on Sale of Investments 35,000 Balance Sheet:

Accounts Receivable $335,000 $380,000 Inventory 503,000 575,000 Prepaid Expenses 22,000 10,000 Accounts Payable(to merchandise suppliers) 379,000 410,000 Accrued Expenses Payable 180,000 155,000