Cash flows from operating activities for both the indirect and direct methods are presented for Electronic Transformations. $ 34,200 Cash Flows from Operating Activities (Indirect method) Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Increase in accounts receivable Increase in accounts payable Increase in income tax payable Net cash flows from operating activities 7,200 (11,200) 6,200 4,200 $40,600 Cash Flows from Operating Activities (Direct method) Cash received from customers Cash paid for operating expenses Cash paid for income taxes Net cash flows from operating activities $ 74,000 (24,200) (9,200) $40,600 Required: Complete the following income statement for Electronic Transformations. Assume all accounts payable are to suppliers. ELECTRONIC TRANSFORMATIONS Income Statement For the Year Ended December 31, 2021 Net sales Expenses: Operating expenses Depreciation expense 7,200 Income tax expense Total expenses Net income $ 34,200