Rasheed Company reports net income of $540,000 for the year ended December 31, 2011. It also reports $97,200 depreciation expense and a $11,000 gain on the sale of machinery. Its comparative balance sheets reveal a $43,200 increase in accounts receivable, $22,140 increase in accounts payable, $11,880 decrease in prepaid expenses, and $16,740 decrease in wages payable. Required: Prepare only the operating activities section of the statement of cash flows for 2011 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Rasheed Company reports net income of $540,000 for the year ended December 31, 2011. It also reports $97,200 depreciation expense and a $11,000 gain on the sale of machinery. Its comparative balance sheets reveal a $43,200 increase in accounts receivable, $22,140 increase in accounts payable, $11,880 decrease in prepaid expenses, and $16,740 decrease in wages payable.