Cemptex Corporation prepares its statement of cash flows using the indirect method

Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2018 fiscal year was $669,000. Depreciation and amortization expense of $96,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:

Decrease in accounts receivable$31,000

Increase in inventories 10,100

Increase prepaid expenses 9,400

Increase in salaries payable 10,900

Decrease in income taxes payable 20,000

Required:

Prepare the operating activities section of the 2018 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

Here’s the SOLUTION

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