Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending BalanceBeginning Balance Assets: Current assets: Cash and cash equivalents$ 31,000$ 28,000 Accounts receivable18,00020,000 Inventory58,00056,000 Prepaid expenses12,00010,000 Total current assets119,000114,000 Property, plant, and equipment374,000354,000 Less accumulated depreciation190,000165,000 Net property, plant, and equipment184,000189,000 Total assets$ 303,000$ 303,000 Liabilities and stockholders' equity: Current liabilities: Accounts payable$ 13,000$ 9,000 Accrued liabilities52,00053,000 Income taxes payable67,00069,000 Total current liabilities132,000131,000 Bonds payable76,00073,000 Total liabilities208,000204,000 Stockholders’ equity: Common stock28,00026,000 Retained earnings67,00073,000 Total stockholders’ equity95,00099,000 Total liabilities and stockholders' equity$ 303,000$ 303,000 The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows?