Exercise 12.6 Indirect: Cash flow fromperations LO P2 Salud Company reports the following information. Use the indirect method to prepare only 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.) Selected Annual Income Statement Data Net income Depreciation expense Gain on sale of machinery Selected Year-End Balance Sheet Data $400,000 Accounts receivable increase 80,000 Prepaid expenses decrease 20,000 Accounts payable increase $40,000 12,000 6,000 2,000 Wages payable decrease Cash flows from operating activities Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Changes in current operating assets and liabilities