Create the Operating Section of the Statement of Cash Flows

Create the operating section of the statement of cash flows (indirect method).
RLV Inc.
Income Statement
For the Year Ending Dec. 31,2010

$\begin{array}{lr}\text { Sales } & 250,000 \\\text { Cost of Goods Sold } &\underline{ 50,000 }\\\text { Gross Margin } & 200,000 \\\text { All Other Items: } & \\\text { Salaries Expense } & (100,000 \\\text { Depreciation Expense } & (25,000 \\\text { Gain on Sale of Equipment } & \underline{10,000} \\\text { Net Income } & \underline {8 5 , 0 0 0}\end{array}$ RLVIIC.
Balarice Sheet - Partial Staternent
Dec. 31, 2010
                                              $2010 \quad 2009$
Cash                                     $10,000 \quad 3,000$
Accounts Receivable            $20.000 \quad 15.000$
Inventory                             $\begin{array}{ll}9,000 & 13,000\end{array}$
Accounts Payable                $\begin{array}{ll}13.000 & 2,000\end{array}$