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 $ 85,100 Expenses Cost of goods sold $51,775 Depreciation expense 6,700 Salaries expense 11,400 69,875 Net income $ 15,225 year Partial Balance Sheet Accounts receivable Inventory Salaries payable Current Prior year $10,600 $ 14,600 12,800 9,900 1,560 950 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