C. Pat Gibson Company Accrual Basis Income Statement For the Year Ended December 31, 2012 Net sales Expenses $900,000 Cost of goods sold Selling and administrative expense Total expenses Income before income taxes Income taxes Net income 550,000 133,000 $683,000 217,000 65,400 $151,600 Other data: a. Cost of goods sold includes depreciation expense of $20,000. b. Selling and administrative expense includes goodwill amortization of $10,000. c. Decrease in deferred income taxes (a liability account), $5,000. d. Increase in accounts receivable, $20,000. e. Increase in accounts payable, $10,000. f. Increase in inventories, $30,000. g. Decrease in income taxes payable, $20,000. Required: Prepare a cash basis income statement. Prepare the cash flows from operating activities using the indirect approach a. b