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Cash flows from operating activities (indirect method). Presented below is the income statement of Cowan, Inc.

Cash flows from operating activities (indirect method).
Presented below is the income statement of Cowan, Inc.:
Sales $380,000
Cost of goods sold 225,000
Gross profit $155,000
Operating expenses 85,000
Income before income taxes 70,000
Income taxes 28,000
Net income $ 42,000

In addition, the following information related to net changes in working capital is presented:
Debit Credit
Cash $12,000
Trade accounts receivable 15,000
Inventories $19,400
Salaries payable (operating expenses) 8,000
Trade accounts payable 12,000
Income tax payable 3,000

The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,600.

Instructions
Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows using the Indirect Method.

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