The following is the operating section of the statement of cash flows (direct method) of Battery Builders, Inc.: Collections from customers $ 28,000 Payments to suppliers for inventory purchases (13,000 ) Payments for operating expenses (9,000 ) Payments for income taxes (2,260 ) Cash provided by operating activities 3,740 The following information is obtained from the income statement of Battery Builders: Net income $ 6,740 Depreciation expense 4,000 In addition, the following information is obtained from the comparative balance sheets of Battery Builders (decreases in parentheses): Change in accounts receivable $ 3,000 Change in inventory 3,000 Change in accounts payable 2,000 Change in accrued payables (related to operating expense) (2,000 ) Change in income taxes payable (1,000 ) Required: Prepare a complete accrual-basis income statement for the current year. Compute the cash flows from operations using the indirect approach (that is, start with accrual-basis net income and adjust for various items to obtain cash flows from operations).