Statement of cash flows; indirect method
Response to the following problem:
Net income of Mansfield Company was $45,000. The accounting records reveal depreciation expense of $80,000 as well as increases in prepaid rent, salaries payable, and income taxes payable of $60,000, $15,000, and $12,000, respectively.
Prepare the cash flows from operating activities section of Mansfield's statement of cash flows using the indirect method.