Connor Limited Reported Net Earnings of $265,000 for the Current

Connor Limited reported net earnings of $265,000 for the current year. Depreciation expense recorded on buildings and equipment amounted to $82,000 for the year. Balances of the current assets and current liabilities accounts at the beginning and end of the year are as follows: $$\begin{array} { | l | r | r | } \hline & \text { Beginning of year } & \text { End of year } \\\hline \text { Cash } & \$ 15,000 & \$ 20,000 \\\hline \text { Trade receivables } & 22,500 & 16,500 \\\hline \text { Inventories } & 57,000 & 52,000 \\\hline \text { Prepaid expenses } & 4,000 & 8,500 \\\hline \text { Trade payables } & 18,000 & 14,000 \\\hline \text { Income taxes payable } & 900 & 1,200 \\\hline\end{array}$$ Prepare the operating activities section of the cash flow statement using the indirect method.