7 8 Net income 9 Depreciation expense 10 11 12 Accounts receivable 13 Prepaid rent 14 Inventory 15 Accounts payable 16 Salaries payable 17 $85,000 110,000 December 31, 2021 $94,000 December 31, 2022 $113,000 19,000 24,700 41,800 33,400 25,100 27,600 22,590 27,100 18 Prepare the cash flows from operating activities section of Laker's statement of cash flows using the indirect method. 19 Formulas for amounts to be deducted must return negative values. 20 21 22 Cash flows from operating activities: 23 Net income ($85,000) 24 Adjustments for noncash effects: 25 26 27 Depreciation expense Increase in accounts receivable 110,000 Changes in operating assets and liabilities 28 Increase in prepaid rent 29 Decrease in inventory 30. Increase in accounts pavable 19,000 5,700 O (8,400) (1.900) +