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Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below.

Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below. Selected Balance Sheet Accounts Prior Year Current Year Accounts Receivable $ 29,000 $ 20,000 Inventory 40,000 44,000 Prepaid Rent 3,000 Accounts Payable 23,000 30,000 Salaries and Wages Payable 6,000 9,000 $ 600,000 Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income 340,000 40,000 60,000 24,000 24,000 22,000 20,000 $ 70,000 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Enter any deductions and cash outflows as a negative value.) Pioneer Industries Cash Flows from Operating Activities Net Income $ 70,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense (40,000) Changes in current assets and current liabilities: Accounts Receivable (9,000) Inventory 4,000 Prepaid Rent (3,000) Accounts Payable 7,000 Salaries and Wages Payable 3,000 Net cash provided by operating activities $ 32,000

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