E12-5 (Algo) Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12-2] [The following information applies to the questions displayed below.] Suppose your company sells goods for $500, of which $300 is received in cash and $200 is on account. The goods cost your company $165 and were paid for in a previous period. Your company also recorded salaries and wages of $170, of which only $50 has been paid in cash. 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 sales revenue of $300 for cash and $200 on account and record the cost of goods sold of $165 using one journal entry. ecord the B Record the salaries and wages expense of $170. Complete this question by entering your answers in the tabs below. Calculate 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.)