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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 Selected Year-End Balance Sheet Data Net income $400,000 Accounts receivable increase $40,000 Depreciation expense 89,000 Prepaid expenses decrease 12,080 Gain on sale of machinery 20,000 Accounts payable increase 6,000 Wages payable decrease 2.000 5 400,000 Cash flows from operating activities Net income Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Depreciation Accounts receivable increase Prepaid expense decrease Changes in current operating assets and liabilities $ 80,000 (40,000) 12.000 $ 400,000 Cash flows from operating activities Net income Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Depreciation $ Accounts receivable increase X Prepaid expense decrease Changes in current operating assets and liabilities Accounts payable increase Wages payable decrease Gain on sale of machinery x 80,000 (40,000) 12,000 6,000 (2.000) (20,000) X 36.000 $ 436 000 Red text indicates no response was expected in a celor a formu a-based calculation correct na pinduct