E12-2 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12- 2) Suppose your company sells services of $300 in exchange for $170 cash and $130 on account. Required: 1. Prepare the journal entry to record this transaction. 2. Identify the amount that should be reported as net cash flow from operating activities. 3. Identify the amount that would be included in net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Required 1 Required 2 Required 3 Required 4 Prepare the journal entry to record this transaction. (If no entry is required for a transaction/event, the first account field.) View transaction list Journal entry worksheet Record the service revenue of $170 for cash and $130 on account. Note: Enter debits before credits. Transaction Debit Credit General Journal Accounts Receivable Cash Service Revenue 130 300 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Identify the amount that should be reported as net cash flow from operating activities. Net Cash Flow 1$ 170 Suppose your company sells services of $300 in exchange for $170 cash and $130 on account. Required: 1. Prepare the journal entry to record this transaction. 2. Identify the amount that should be reported as net cash flow from operating activities. 3. Identify the amount that would be included in net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating a Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Identify the amount that would be included in net income. Net Income Suppose your company sells services of $300 in exchange for $170 cash and $130 on account. Required: 1. Prepare the journal entry to record this transaction. 2. Identify the amount that should be reported as net cash flow from operating activities. 3. Identify the amount that would be included in net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (req Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reduired 4 Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (Amounts to be deducted should be indicated with a minus sign.) Net Income Increase in Accounts Receivable Net Cash Flow from Operating Activities