E12-8 (Algo) Reporting Cash Flows from Operating Activities (Indirect Method) [LO 12-2) $ 73,000 The following information pertains to Guy's Gear Company Sales Expenses: Cost of Goods Sold $ 46,500 Depreciation Expense 5,300 Salaries and Wages Expense 11,300 Net Income Accounts Receivable Decrease $ 3,300 Inventory Increase 7.300 Salaries and Wages Payable Increase 680 63, 100 $ 9,900 Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the Indirect method. (Amounts to be deducted should be indicated with a minus sign.) GUY'S GEAR COMPANY Cash Flows from Operating Activities--Indirect Method Adjustments to Reconcile Net Income to Cash Provided by Operating Activities Changes in Current Assets and Current Liabilities $ Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended December 31 are presented below. Income Statement Sales Revenue $ 1,990 Expenses: Cost of Goods Sold 880 Depreciation Expense 180 Salaries and Wages Expense 480 Rent Expense 230 Insurance Expense 78 Interest Expense 58 Utilities Expense 48 Net Income $36 Selected Balance Sheet Accounts Current Prior Year Year Inventory $ 78 $ 58 Accounts Receivable 370 430 Accounts Payable 210 230 Salaries and Wages Payable 33 22 Utilities Payable 22 56 Prepaid Rent 2 10 Prepaid Insurance 14 5 TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent (and subtracted from net income as Rent Expense) was more than the amount paid for rent in cash during the current year, Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Required: Prepare the cash flows from operating activities section of the statement of cash flows using the Indirect method (Amounts to be deducted should be indicated with a minus sign.) HAMBURGER HEAVEN Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities 0 Total Adjustments $ 0