Pancho Company reported net income of $239,000 for 2020. Pancho sold equipment that cost $108,000 and had a book value of $64,800 for $55,800. The comparative balance sheet shows a decrease in accounts receivable of $17,000 for the year, a $13,000 increase in accounts payable, a $5,000 increase in prepaid expenses, and a $16,000 increase in accumulated depreciation. Required:
Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method.