The condensed single-step income statement for the year ended December 31, 2014, of Conti Chemical Company,

The condensed single-step income statement for the year ended December 31, 2014, of Conti Chemical Company, a distributor of farm fertilizers and herbicides, follows.

Sales                      $26,000,000

Less: Cost of goods sold        $15,200,000

Operating expenses

     (including depreciation of $1,640,000)   7,600,000

Income taxes expense              800,000 23,600,000

Net Income        $2,400,000

Selected accounts from Conti Chemical’s balance sheets for 2014 and 2013 follow.

         2014     2013

Accounts receivable $4,800,000 $3,400,000

Inventory         1,680,000   2,040,000

Prepaid expenses   520,000      360,000

Accounts payable  1,920,000   1,440,000

Accrued liabilities                  120,000             200,000

Income taxes payable    280,000      240,000

Required:

Prepare a schedule of cash flows from operating activities using the indirect method.