Diaz Company Had the Following Comparative Balance Sheet Information at the End

Diaz Company had the following comparative balance sheet information at the end of Year 2 and Year 1:
$\begin{array}{c} \text {Diaz Company}\\ \text { Comparative Balance Sheets}\\\begin{array}{lll}&\text { Year } 2 \\ \text { Cash } & \$ 30,000 \\ \text { Accounts receivable } & 48,000 \\ \text { Inventory } & 158,000 \\ \text {Prepaid insurance } & 10,000 \\\text { Property, plant and equipment } & 70,000 \\ \text { Accumulated depreciation } & (14,000) \\ \text { Total } & \$ 302,000 \\ \text { Acounts payable } & \$ 14,000 \\ \text { Bonds payable } & 90,000 \\ \text { Common stock } & 140,000 \\\text { Retained earnings } & 58,000 \\ & \$ 302,000 \\\end{array}\begin{array}{r}\text { Year } 1 \\ \$ 28,000 \\50,000 \\156,000 \\8,00 0 \\60,000 \\(10,000) \\ 292,000 \\ \$ 18,000\\120,000 \\120,000 \\34,000 \\ 292,000\end{array}\end{array}$
Diaz reported net income for Year 2 of $40,000.No property,plant,and equipment were disposed of during the year.Diaz uses the indirect method to prepare the statement of cash flows.
Using the indirect method,calculate Diaz's cash flow from operating activities for Year 2.