Reporting Cash Flows from Operating Activities (Indirect Method) - The following information pertains to Satellite Company:
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Income Statement for 2012
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Sales
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$85,000
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Expenses
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Cost of goods sold
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$51,875
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Depreciation expense
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8,500
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Salaries expense
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12,000
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72,375
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Net income
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$12,625
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Partial Balance Sheet
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2012
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2011
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Accounts receivable
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$10,500
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$12,000
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Inventory
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14,000
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8,000
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Salaries payable
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1,750
|
800
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Required:
Present the operating activities section of the statement of cash flows for Satellite Company using the indirect method.