Based on the following income statement and balance sheet for Rashid

Question

Based on the following income statement and balance sheet for Rashid Corporation, determine the cash flows from operating activities using the indirect method.

RASHID CORPORATION Income Statement For Year Ended December 31, 2013
Sales		$504,000
Cost of goods sold	$327,600
Depreciation expense	42,000
Other operating expenses	125,500	(495,100)
Other gains (losses):
Gain on sale of equipment		7,200
Income before taxes		$ 16,100
Income tax expense		(4,800)
Net income		$ 11,300

RASHID CORPORATION Balance Sheets At December 31
	2013	2012
Assets
Cash	$ 64,650	$ 55,800
Accounts receivable	21,000	29,000
Inventory	58,000	52,100
Equipment	240,000	222,000
Accumulated depreciation	(106,000)	( 96,000)
Total assets	$277,650	$262,900

Liabilities:
Accounts payable	$ 28,400	$ 23,700
Income taxes payable	1,050	1,200
Total liabilities	$ 29,450	$ 24,900
Equity
Common stock	$106,000	$106,000
Contributed Capital in excess of par value	18,000	18,000
Retained earnings	124,200	114,000
Total equity	$248,200	$238,000
Total liabilities and equity	$277,650	$262,900