Use the following information to determine cash flows using the indirect method.

Current Year Prior Year
Net Income $365,000
Accounts receivable 439,000 $420,000
Inventory 560,000 516,000
Prepaid expenses 42,000 48,000
Accounts payable 146,000 119,000
Depreciation expense 107,000
Purchase of long-term assets 616,000
Issuance of long-term debt 200,000
Issuance of stock for cash 160,000
Issuance of stock for long-term assets 110,000
Purchase of treasury stock 64,000
Sale of long-term investments at cost 49,000

Assume that the indirect method is used. The Net Cash Flows from Financing Activities section will include:

Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.