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Stark Inc presents its statement of cash flows using the indirect method. The following accounts and...

Stark Inc presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Stark’s 2017 and 2016 year-end balance sheets:

Account Title 2017 2016
Accounts recivable $37,500 36,000
Inventory 12,500 11,800
Prepaid Rent 3,600

2,800
Accounts Payable 12,400 14,400
Salaries Payable 3,600 5,100
Unearned Revenue 3,000 5,000


The income statement report a $1,500 gain on the sale of equipment, a $1,000 loss on the sale of equipment, and $4,000 of depreciation expense. Net Income for the period was $39,500.

Prepare the operating activities section of the statement of cash flows

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