Exercise 21-26 (Static) Cash flows from operating activities (indirect method)-includes sale of cash equivalent [LO21-4] Portions of the financial statements for Clear Transmissions Company are provided below: Sales CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2024 Cost of goods sold ($ in thousands) $ 1,320 see 820 Gross margin Salaries expense Depreciation expense Amortization expense Interest expense Loss on sale of cash equivalents Income before taxes Income tax expense Net Income. $ 220 180 10 40 6 456 364 182 $182 CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) Year Cash 2024 $ 102 2023 Change $ 100 $2 Accounts receivable 220 232 (12) Inventory 440 450 (10) Accounts payable 140 134 6 Salaries payable 88 86 (6) Interest payable 25 20 5 15 10 5 Income tax payable Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the Indirect method Note: Enter your answers in thousands (l.e., 5,000 should be entered as 5). Cash outflows should be indicated with a minus sign. Answer is complete but not entirely correct. Cash Flows from Operating Activities: Net income Adjustments for noncash effects: Depreciation expense Amortization expense 182 180 10 Loss on sale of cash equivalents Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the Indirect method. Note: Enter your answers in thousands (1.e., 5,000 should be entered as 5). Cash outflows should be indicated with a minus sign. Answer is complete but not entirely correct. Cash Flows from Operating Activities: Net income Adjustments for noncash effects: S 182 Depreciation expense Amortization expense Loss on sale of cash equivalents Changes in operating assets and liabilities: Decrease in accounts receivable Decrease in inventory Increase in accounts payable Decrease in salaries payable. Increase in interest payable 0 0 0 180 10 6 X 12 10 o (6) 5 5 Increase in income tax payable Net cash flows from operating activities $ 410 000000