E12-7 (Algo) Reporting Cash Flows from Operating Activities (Indirect Method) LO12-2 The following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 85,000 Expenses Cost of goods sold $51,875 Depreciation expense 7,500 Salaries expense 11,900 71,275 Net income $ 13,725 Partial Balance Sheet Accounts receivable Inventory Salaries payable Current Prior year year $10,500 $ 14,100 13,100 8,700 1,660 810 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. (List cash outflows as negative amounts.) Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. (List cash outflows as negative amounts.) PEAK HEIGHTS COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities: Net income Accounts receivable decrease Inventory increase Depreciation expense Salaries payable increase Net cash provided by operating activities