Following are the income statement and other information for Polk Corporation.
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Polk Corporation
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Income Statement
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For the Year Ended December 31, 2010
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Sales
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$6,000
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Cost of goods sold
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3,000
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Gross margin
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$3,000
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Operating expenses
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$1,200
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Depreciation expense
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600
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1,800
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Income before income taxes
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$1,200
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Income taxes expense
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300
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Net income
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$ 900
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Accounts receivable (net) decreased by $1,500 during the year. Inventory increased by $900, and Accounts Payable decreased by $1,200 during the year. Income Taxes Payable increased by $300 during the year.
Prepare a schedule of cash flows from operating activities using the indirect method.