E12-3 (Algo) Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO122] [The following information applies to the questions displayed below] Suppose your company sells services for $395 cash this month. Your company also pays $205 in salaries and wages, which includes $85 that was payable at the end of the previous month and $120 for salaries and wages of this month. 1. Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Complete this question by entering your answers in the tabs below. Calculate the amount that should be reported as net cash fow from operating activities. Complete this question by entering your answers in the tabs below. Calculate the amount that should be reported as net income. Complete this question by entering your answers in the tabs below. 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.)