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Exercise 12-4
Azen Company reported net income of $214,050 for 2012. Azen
also reported depreciation expense of $37,920 and a loss of
$6,480 on the sale of equipment. The comparative balance sheet
shows an increase in accounts receivable of $16,560 for the
year, a $18,500 increase in accounts payable, and a
$5,440 increase in prepaid expenses.

Prepare the operating activities section of the statement of cash
flows for 2012. Use the indirect method. (Show amounts
that decrease cash flow with either a – sign e.g. -15,000 or in
parenthesis e.g. (15,000).)

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