Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Year 2 $ 21,700 Year 1 $29,000 59,400 51,800 18,100 24,400 23,900 17,500 5,000 4,150 900 2,950 Unearned service revenue The Year 2 income statement is shown next: Income Statement Sales Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment Net income $ 618,000 (372,000) 246,000 4,700 (39,000) (157,000) (5,400) 49,300 3,300 $ 52,600 13 b. Prepare the operating activities section of the statement of cash flows using the indirect method for Year 2. (Amounts to be deducted should be indicated with a minus sign.) GREEN BRANDS, INC. Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities Add: Deduct Add: noncash expenses Net cash flow from operating activities $ 0 L