The current sections of Blues Traveler Co. balance sheets at December 31, 2007 and 2008 are presented below.

Blues Traveler’s net income for 2008 was $163,000. Depreciation expense was $30,000.
Prepare the operating activities section of Blues Traveler’s statement of cash flows for the year ended December 31, 2008, using the indirectmethod.

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BLUES TRAVELER CO. Comparative Balance Sheets (partial) December 31 2008 2007 Current assets Cash Accounts receivable Inventory Prepaid expenses $105.000 110,000 171,000 27,000 $413,000 S 99,000 85,000 186,000 32,000 $402,000 Total current assets Current liabilities Accrued expenses payable Accounts payable Total current liabilities $15,000 88,000 S 5,000 92,000 97,000 $103,000