E12-4 (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 of $170 in exchange for $130 cash and $40 on account. Depreciation of $60 relating to equipment also is recorded. 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.) A. Record the service revenue of $130 for cash and $40 on account. B Record the depreciation expense of $60 2. Calculate the amount that should be reported as net cash flow from operating activities. 3. Calculate the amount that should be reported as net income. 4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). Complete this question by entering your answers in the tabs below. Caiculate the amount that should be reported as net cash flow 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.)