Required information Skip to question [The following information applies to the questions displayed below.] Green Brands, Incorporated (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBIs Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable $ 20,200 $ 28,000 Merchandise inventory 59,300 50,900 Prepaid insurance 17,500 26,100 Accounts payable 23,000 19,200 Salaries payable 4,700 3,900 Unearned service revenue 750 2,750 The Year 2 income statement is shown next: Income Statement Sales $ 622,000 Cost of goods sold (364,000) Gross margin 258,000 Service revenue 4,100 Insurance expense (40,000 Salaries expense (142,000) Depreciation expense (5,900) Operating income 74,200 Gain on sale of equipment 3,500 Net income $ 77,700 b. Prepare the operating activities section of the statement of cash flows using the indirect method for Year 2. Note: Amounts to be deducted should be indicated with a minus sign.

Required information [The following information applies to the questions displayed below.] Green Brands, Incorporated (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: The Year 2 income statement is shown next: b. Prepare the operating activities section of the statement of cash flows using the indirect method for Year 2. Note: Amounts to be deducted should be indicated with a minus sign