Question - Selected balance sheet information and the income statement for Fountainhead Corporation for the current year are presented below.
Selected Balance Sheet Accounts
Prior Year
Prior Year Current Year
Accounts Receivable $17,800 $12,000
Merchandise Inventory 24,000 26,400
Prepaid Rent 1,400 0
Accounts Payable 13,400 17,200
Salaries and Wages Payable 2,800 4,200
Income Statement
Sales Revenue $360,000
Expenses:
Cost of Goods Sold 212,000
Depreciation Expense 24,000
Salaries Expense 36,000
Rent Expense 14,400
Insurance Expense 14,400
Interest Expense 13,200
Utilities Expense 12,000
Net Income$34,000
Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.