CP12-2 (Algo) Computing Cash Flows from Operating Activities (Indirect Method) [LO 12- 2] Hamburger Heaven's income statement for the current year and selected balance sheet data for the current and prior years ended December 31 are presented below. $ 1,990 Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income 880 180 480 230 78 58 48 $ 36 ces Selected Balance Sheet Accounts Current Prior Year Year Inventory $ 78 $ 58 Accounts Receivable 370 430 Accounts Payable 210 230 Salaries and Wages Payable 33 22 Utilities Payable 22 56 Prepaid Rent 10 Prepaid Insurance 14 5 TIP: Prepaid Rent decreased because the amount taken out of Prepaid Rent (and subtracted from net income as Rent Expense) was more than the amount paid for rent in cash during the current year. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method (Amounts to be deducted should be indicated with a minus sign.) 2 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) HAMBURGER HEAVEN Statement of Cash Flows (Partial) For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Changes in Current Assets and Current Liabilities Decrease in Accounts Receivable Increase in Inventory Increase in Salaries and Wages Payable Total Adjustments 0 $ 0