Given the Following Information, Prepare the Cash Flows from Operations

Given the following information, prepare the cash flows from operations section of the statement of cash flows using the indirect method.
$\begin{array}{lll}\text { The Wayne Corporation}\\\text { Income Statement}\\\text { For the Year Ending December 31, Year 2}\\\text { Sales } & & \$ 500,000 \\\text { Expenses: } & & \\\text { Cost of goods sold } & \$ 150,000 & \\\text { Depreciation expense } & 15,000 &\\\text { Salary expense}&\underline{35,000}&\underline{200,000}\\\text { Net income}&&\underline{\$300,000}\\\text { Additional Information: } & & \\\text { Accounts receivable } & \$ 6,000 & \text { Decrease } \\\text { Merchandise inventory } & 12,000 & \text { Increase } \\\text { Accounts payable } & 900 & \text { Increase } \\\text { Salaries payable } & 600 & \text { Decrease }\end{array}$