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 $ 86,500 Expenses Cost of goods sold $51,875 Depreciation expense 7,600 salaries expense 10,300 69, 775 Net income $ 16, 725 $ Partial Balance Sheet Accounts receivable Inventory Salaries payable Current Prior year year 11,200 $ 15,100 13,000 9,600 1,560 870 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