Question 2 [20 points] The account balances for the noncash current assets and current liabilities of Star Inc. are as follows: December 31 2015 2014 Accounts receivable 24,000 36,000 Merchandise Inventory 32.500 53,500 Prepaid expenses 47,000 57.500 Totals 190.500 147,000 Accounts payable 52,500 33,500 Salaries payable 88,500 68,500 Totals 63,000 102,000 During 2015 Star Inc reported depreciation expense of $12,000. All purchases and sales are on account. Net income for 2015 was $40.000. Prepare the operations section of the statement of cash flows using the indirect method. (select one) Statement of Cash Flows (select one) X X X X X X X X X EU ttt +
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