The income statement for Weinberg Chemical Supply is as follows:
Weinberg Chemical Supply
Income Statement
For the Year Ended December 31, 2011
Sales .................... $1,025,000
Less:
Cost of goods sold ..............$ 620,000
Depreciation expense ............$ 65,000
Amortization of patent ...........$ 6,500
Wages expense ..............$ 61,000
Insurance expense ...............$ 12,000
Income before taxes ............$ 260,500
Less income taxes .............$ 91,175
Net income .................$ 169,325
Other information is as follows:
1. Accounts receivable decreased by $13,000 during the year.
2. Accounts payable increased by $6,500.
3. Wages payable had a balance of SO at the beginning of the year; at the end of the year, the balance was $4,300.
4. Prepaid insurance increased by $7,500 during the year.
Required:
Prepare a schedule that shows the operating cash flows for the year using the indirect method.