The Prince Company reported net income of $260,000 for the current year. Depreciation recorded on buildings and equipment amounted to $90,000 for the year. Balances of the current asset and current liability accounts for 20X0 and 20X1 are as follows:
20X1 20X0
Cash...........................$20,000.........$15,000
Accounts receivable...........19,000...........32,000
Inventories.....................50,000...........65,000
Prepaid expenses...............7,500.............5,000
Accounts payable.............12,000............18,000
Income taxes payable..........1,600............1,200
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Amounts to be subtracted should be indicated by a minus sign.