Exercise 12-5 Indirect: Cash flows from operating activities LO P2 Fitz Company reports the following information. Selected Annual Income Statement Data Net Income $415,000 Depreciation expense 48,200 Amortization expense 7,400 Gain on sale of plant assets 7,800 Selected Year-End Balance Sheet Data Accounts receivable decrease $90,300 Inventory decrease 42,500 Prepaid expenses increase 5, 100 Accounts payable decrease 9,600 Salaries payable increase 2,100 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31, (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile not income to net cash provided by operating activities