Chapter 12 Assignment 2 Part 2 of 2 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: Account Title 10 Accounts receivable points Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue eBook Print References The Year 2 income statement is shown next: Income Statement Sales Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment Net income Year 2 $ 20,500 Year 1 58,100 $ 27,000 48,500 18,000 26,300 25,100 17,700 4,950 4,100 850 2,900 $ 622,000 (365,000) 257,000 4,400 (39,000 (155,000) (4,700) 62,700 4,900 $ 67,600 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. GREEN BRANDS, INCORPORATED Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Add: Deduct Add: noncash expenses Net cash flow from operating activities