3 Exercise 16-5 Indirect: Cash flows from operating activities LO P2 Fitz Company reports the following information. 1.25 points Selected Annual Income Statement Data Net income $ 391,000 Depreciation expense 44,600 Amortization expense 7,300 Gain on sale of plant assets 6,300 Selected Year-End Balance Sheet Data Accounts receivable decrease $ 158,900 Inventory decrease 45,500 Prepaid expenses increase 5,400 Accounts payable decrease 10,700 Salaries payable increase 2,200 eBook Hint Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) Print Statement of Cash Flows (partial) Cash flows from operating activities he References Adjustments to reconcile net income to net cash provided by operating activities Decrease in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in salaries payable Depreciation expense ---------- $