es Exercise 12-2A (Algo) Use the indirect method to determine cash flows from operating activities LO 12-1 Alfonza Incorporated presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable Accounts payable Year 2 $12,400 8,650 Year 1 $19,200 10,900 The Year 2 Income statement showed net Income of $25,800. Required a. Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be Indicated with a minus sign.) Cash flows from operating activities: