Maryland Company Had Net Income of $21,850 for the Year

Essay

Maryland Company had net income of $21,850 for the year ended December 31,2015.Additional information from the income statement follows:
$$\begin{array} { l l } \text { Depreciation expense } & \$ 8,400 \\\text { Intersit expense } & 3,900 \\\text { Income tax expense } & 5,700\end{array}$$
The company also reported the following balances:
$$\begin{array} { l l l } & \text { December } & \text { December } \\& \mathbf { 3 1 , 2 0 1 4 } & \mathbf { 3 1 , 2 0 1 5 } \\\text { Accounts receivable } & \$ 10,000 & \$ 11 , \mathrm {~B} 00 \\\text { Accounts payable } & \$ 20,000 & \$ 23,200 \\\text { Income taxes payable } & \$ 22,000 & \$ 21,300 \\\text { Inventory } & \$ 30,000 & \$ 25,000\end{array}$$
Required:
Prepare the operating activities section of the statement of cash flows for the year ended December 31,2015.Use the indirect method.