The condensed single-step income statement for the year ended December 31, 2012, of Sunderland Chemical Company, a distributor of farm fertilizers and herbicides, appears as follows:

Selected accounts from Sunderland Chemical Company's balances sheets for 2012 and 2011 are as follows:

Present in good form a schedule of cash flows from operating activities using the indirect method.

Sales Less: Cost of goods sold $13,000,000 $7,600,000 Operating expenses (including depreciation of $820,000. Income taxes expense 3,800,000 400,000 11,800,000 S 1,200,000 Net income 2012 2011 Accounts receivable Inventory Prepaid expenses Accounts payable Accrued liabilities Income raxes payable $2,400,000 840,000 260,000 960,000 60,000 140,000 $1,700,000 1,020,000 180,000 720,000 100,000 120,000