The income statement disclosed the following items for 2008:
|
Depreciation expense
|
$ 24,500
|
|
Gain on disposal of equipment
|
10,200
|
|
Net income
|
186,000
|
Balances of the current assets and current liability accounts changed between December 31, 2007, and December 31, 2008, as follows:
|
Accounts receivable
|
$4,400
|
|
Inventory
|
2,000*
|
|
Prepaid insurance
|
800*
|
|
Accounts payable
|
2,700*
|
|
Income taxes payable
|
900
|
|
Dividends payable
|
500
|
|
*Decrease
|
|
Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.