Cash Flows from Operating Activities-Indirect Method
the Data Below Are

Cash flows from operating activities-indirect method
The data below are taken from the financial statements of the Spectrum Corporation:
Complete the partial statement of cash flows for the year ended December 31, 2009, showing the computation of net cash flows from operating activities by the indirect method:
$$\begin{array} { | l | l | l | } \hline \text { Income Statement: } & 2009 & \\\hline & & \\\hline \text { Net income } & \$ 299,000 & \\\hline \text { Depreciation expense } & 101,000 & \\\hline \text { Amortization of trademark } & 20,000 & \\\hline \text { Loss on sale of machinery } & 38,000 & \\\hline & & \\\hline \text { Balance Sheet: } & 12 / 31 / 09 & 12 / 31 / 08 \\\hline & & \\\hline \text { Accounts receivable } & \$ 195,000 & \$ 204,000 \\\hline \text { Inventory } & 353,000 & 321,000 \\\hline \text { Prepaid expenses } & 50,000 & 38,000 \\\hline \text { Accounts payable } & 314,000 & 290,000 \\\hline \text { Accrued expenses payable } & 158,000 & 159,000 \\\hline\end{array}$$ $\text {SPRECTRUM CORPORATION}$
$\text { Partial Statement of Cash Flows }$
$\text {For the Year Ended December 31, 2009}$
$\begin{array}{|l|l|}\hline \text { Cash flows from operating activities (indirect } & \\\text { method): } & \\\hline \text { Net income } &\$ \\ \hline \text { Add: } & \\\hline &\underline{\quad\quad} \\\hline \text { Subtotal } & \$ \\\hline \text { Less: } & \\\hline &\underline{\quad\quad} \\\hline \text { Net cash flows from operating activities } & \$ \\\hline\end{array}$