We need use the data to prepare cash flows from operating activities section of the statement of cash flows using the indirect method and develop cash flow

CASH FLOWS FROM OPERATING ACTIVITIES- INDIRECT METHOD PROBLEM DATA DEMONSTRATION COMPANY Comparative Balance Sheet Accounts December 31, 2005 2004 $30,000 $39,000 15,000 10,000 20,000 18,000 s.e Change Ce Current assets Accounts receivable Prepaid rent Inventory Current liabilities 18,000 12,000 Accounts payable Interest payable Taxes payable 6,000 2,000 3,000 S,000 DEMONSTRATION COMPANY Income Statement For the Year Ended December 31,2005 Revenues Sales revenue Gain on sale of land $400,000 20,000 Total revenues $420,000 Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense 280,000 75,000 15,000 8,000 7000 385,000 5,000 Total expenses Net income Using the above data, prepare the cash flows from operating a ctivities section of the statement of cash flows using the indirect method