Use the following income statement and information about changes in noncash current assets and current liabilities to prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method.

Changes in current asset and current liability accounts for the year that relate to operations follow.
Accounts receivable . . . . . . . . . . $40,500 increase
Accounts payable . . . . . . . . . . . . $13,500 decrease
Merchandise inventory . . . . . . . . . . 27,000 increase
Salaries payable . . . . . . . . . . . . . . . 4,500decrease

BEKHAM COMPANY Income Statement For Year Ended December 31,2011 Sales. Cost of goods sold Gross profit.. Operating expenses $1,818,000 891,000 927,000 Salaries expense Depreclation expense Rent expense $248,535 43,200 48.600 5,400 19,125 Utities expense. 364,860 562,140 7.200 $ 569.340 Gain on sale of equipment Net Income