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. Assume all sales and purchases of inventory are made on account. Account Title Accounts receivable Inventory Prepaid insurance. Accounts payable Salaries payable Unearned service revenue The Year 2 income statement is shown next. Year 2 $ 22,400 Year 1 $ 26,100 58,200 51,900 17,300 25,900 23,000 16,800 4,800 4,000 800 2,800 Income Statement Sales Cost of goods sold Gross margin $610,000 (374,000) 236,000 Service revenue Insurance expense 5,500 (38,000) Salaries expense (151,000) Depreciation expense (4,800) Operating income 47,700 Gain on sale of equipment 4,500 Net income $52,200