21-10 (Algo) Relationship between the income statement and cash flows from operating activities (direct method and indirect method) [LO21-3, 21-4] The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods. Some elements necessary to complete the schedule are missing Required: Complete the schedule by determining each of the following missing elements: (Amounts to be deducted should be indicated with a minus sign.) Cash flows from Operating Activities Indirect Method Direct Method Income Statement Net income Adjustments Sales Gain on sale of equipment Cost of goods sold Salarios expense Depreciation expense $ 443 Decrease in accounts receivable 37 Gain on sale of equipment Increase in inventory Increase in accounts payable (68) (22) Depreciation expense 19 Cash received from customers (37) (Not reported-no cash effect) (25) 31 Cash paid to suppliers 19 Cash paid to employees 22 (Not reported-no cash effect) (187) (49) Complete the schedule by determining each of the following missing elements. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from Operating Activities Income Statement Net income Adjustments Indirect Method Direct Method Sales Gain on sale of equipment Cost of goods sold Salaries expense Depreciation expense Interest expense Insurance expense) Loss on sale of land Income tax expense Net Income $ 443 Decrease in accounts receivable 37 Gain on sale of equipment (68) Increase in inventory Increase in accounts payable (22) Depreciation expense Decrease in bond discount (47) Decrease in prepaid insurance (19) Loss on sale of land (53) Increase in income tax payable Net cash flows from operating activities 19 Cash received from customers 31 Cash paid to suppliers (37) (Not reported--no cash effect) (25) (187) 19 Cash paid to employees (49) 22 (Not reported-no cash effect) 9 Cash paid for interest (22) 22 Cash paid for insurance 19 (Not reported-no cash effect) Cashbaid for income taxes $ 145 Net cash flows from operating activities (34) $ 145 SALIN