For the year ended June 30, 2011, net income for Silk Corporation was $7,400. Depreciation expense was $2,000. During the year, Accounts Receivable increased by $4,400, Inventories increased by $7,000, Prepaid Rent decreased by $1,400, Accounts Payable increased by $14,000, Salaries Payable increased by $1,000, and Income Taxes Payable decreased by $600.
Use the indirect method to prepare a schedule of cash flows from operating activities. Use the minus sign to indicate cash outflows or a decrease in cash.