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 $ 85,900 Expenses Cost of goods sold $51,875 Depreciation expense 6,700 Salaries expense 10,900 69, 475 Net income $ 16,425 Partial Balance Sheet Accounts receivable Inventory Salaries payable Current Prior year year $10,700 $ 15,000 12,600 8,400 1,590 840 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: $ 0