E12-6 Preparing and Evaluatinga 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. Beginning S38 Ending $228 Cash Accounts Receivable 90 198 Inventory 260 158 $388 Total $584 Salaries and Wages Payable Common Stock $13 $ 65 115 127 Retained Earnings 260 392 $388 Total $584 Required: 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 175 Increase in Accounts Receivable 102 Decrease in Inventory Increase in Salaries and Wages Payable 52 Dividends paid 329 Net Cash Flow from Operating Activities