Software Distributors reports net income of $54,000. Included in that number is depreciation expense of $9,500 and a loss on the sale of land of $4,900. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $24,000, a decrease in inventory of $14,500, and an increase in accounts payable of $44,000. Prepare the operating activities section of the statement of cash flows using the indirect method.

Cash flow from operating                150,900

Explanation:

The operating activities section of he cash flow statement would like this

                                                             $

Net Income                                      54,000

Adjustments:

Add depreciation expense               9.500

Add loss on sale of land                 4,900

decrease in account receivable      24,000

Decrease in inventory                      14,500

Decrease in payable                        44,000

Cash flow from operating                150,900

All decrease in assets and increase in liabilities are added. All increase in assets and decrease in liabilities are subtracted.