Response to the following problem:
Rasheed Company reports net income of $390,000 for the year ended December 31, 2011. It also reports $70,000 depreciation expense and a $10,000 gain on the sale of machinery. Its comparative balance sheets reveal a $30,000 increase in accounts receivable, $16,000 increase in accounts payable, $8,000 decrease in prepaid expenses, and $12,000 decrease in wages payable.
Required:
Prepare only the operating activities section of the statement of cash flows for 2011 using the indirect method.