E16-3 Reporting Cash Flows from Operating Activities (Indirect Method) The following information pertains to Guy’s Gear Company for 2010: Sales $80,000 Expenses Cost of goods sold $50,000 Depreciation expense 6,000 Salaries expense 12,000 68,000 Net income $12,000 artial Balance Sheet 2010 2009 Accounts receivable $ 15,000 $ 20,000 Merchandise inventory 18,000 10,000 Salaries payable 2,500 2,000 Required: Present the operating activities section of the statement of cash flows for Guy’s Gear Company using the indirect method.