E 21-19 Relationship between the income statement and cash flows from operating activities (direct method and indirect method) The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods. The amounts for income statement elements are missing. Cash Flows from Operating Activities Indirect Method Direct Method Net income Adjustments: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Increase in salaries payable 12 Cash received from customers (24) $ 612 (36) Cash paid to suppliers (420) 12 Cash paid to employees (66) Depreciation expense Decrease in prepaid insurance 18 (Not reported-no cash effect) 18 Cash paid for insurance (24) Loss on sale of land 12 (Not reported-no cash effect) Increase in income tax payable 12 Cash paid for income taxes (42) Net cash flows from operating activities $ 60 Net cash flows from operating activities $ 60 Income Statement Required: Deduce the missing amounts and prepare the income statement. Sales Cost of goods sold Salaries expense Depreciation expense Insurance expense Loss on sale of land Income tax expense Net income ? ? ? ? ? $?