E12-6 (Algo) Preparing and Evaluating a Simple Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-5] Suppose your company reports $175 of net income and $43 of cash dividends paid, and its comparative balance sheet indicates the following. Cash Accounts Receivable Inventory Total Salaries and Wages Payable Common Stock Retained Earnings Total Required: Beginning $ 38 Ending $ 228 90 198 260 158 $ 388 $584 $ 13 $ 65 115 260 $388 $584 127 392 1. Prepare the operating activities section of the statement of cash flows, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Net Income Increase in Accounts Receivable Decrease in Inventory Increase in Salaries and Wages Payable Dividends paid Net Cash Flow from Operating Activities