2 points eBook Case A Case B Sales Revenue Year 2 Year 1 Year 2 Year 1 $ 10,800 Cost of Goods Sold $ 8,000 $ 20,800 $ 17,880 5,820 Gross Profit 4,700 11,820 10,020 4,980 3,300 8,980 6,980 Depreciation Expense 1,000 1,000 1,400 1,400 Salaries and Wages Expense 2,300 1,800 4,800 4,800 Net Income $ 1,680 $ 500 $ 2,788 $ 780 Accounts Receivable $ 290 $ 380 $ 730 $ 590 Inventory 740 480 720 780 Accounts Payable 690 820 880 Salaries and Wages Payable 990 1,180 280 370 Required: Show the operating activities section of the statement of cash flows for year 2 using the indirect method (Amounts to be deducted should be indicated with a minus sign.) 789 Print Case A $ 1,680 $ Case B 2.780 Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense 1,000 1,400 Changes in Assets and Liabilities Accounts Receivable $ 2,680 S 4,180 Suppose your company reports $245 of net income and $57 of cash dividends pald, and its comparative balance sheet indicates the following Beginning Ending Cash $ 52 $ 292 Accounts Receivable 160 262 Inventory 330 222 Total $ 542 5 776 Salaries and Wages Payable $ 27 $ 135 Common Stock 185 123 Retained Earnings 330 518 Total $ 776 $ 542 Required: 1. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) $ 245 Net Income Increase in Accounts Receivable Decrease in Inventory Increase in Salaries and Wages Payable Dividends paid Net Cash Flow from Operating Activities $ 245