Exercise 12-7 (Algo) Indirect: Reporting cash flows from operations LO P2 Annual Income Statement Data Sales Expenses: Cost of goods sold Wages expense Amortization expense Net income Selected Year-End Balance Sheet Data $ 50,000 Wages payable decrease $ 3,600 Inventory increase 520 24,000 Accounts payable decrease 12,200 1,700 1,600 $ 12,200 Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities