The statement of cash flows for Riker Company (prepared using the indirect method) follows. Consider the following additional information:
(a) Sales for the year totaled $812,350. Cost of goods sold was $500,000. Operating expenses were $100,000. Interest expense was $23,000. Income tax expense was $40,430.
(b) Of the decrease in accounts payable, 80% is related to inventory purchases; the remaining 20% related to operating expenses.
(c) Depreciation and amortization are period costs; they do not enter into the computation of cost of goods sold.

Instructions:
Prepare the Operating Activities section of the statement of cash flows for Riker Company using the directmethod.

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Riker Company Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2011 Cash flows from operating activities 68,850 Loss on sale of machine Gain on retirement of long-term debt Decrease in prepaid operating expenses Net cash provided by operating activities Cash flows from investing activities $155,030 Net cash used in investing activities. Cash flows from financing activities: (66.000) 92000) (2.970) $ 2.350 Net cash used in financing activities Cash at beginning of year