Lake Norman Company reported net income of $225,000 for the current year. Depreciation recorded on buildings and equipment amounted to $75,000 for the year. Balances of the current asset and current...

Lake Norman Company reported net income of $225,000 for the current year. Depreciation

recorded on buildings and equipment amounted to $75,000 for the year. Balances of the current asset

and current liability accounts at the beginning and end of the year are as follows:

End of Year Beginning of Year

Cash $20,000 $15,000

Accounts receivable 22,000 32,000

Inventory 50,000 60,000

Accounts payable 12,000 18,000

Instructions

Prepare the cash flows from the operating activities section of the statement of cash flows using the

indirect method