Exercise $12-6($Algo$)$ Indirect: Cash flows from operating activities LO P$2$

Salud Company reports the following information.

Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December $31.$

Note: Amounts to be deducted should be indicated with a minus sign.Exercise $12-6($Algo$)$ Indirect: Cash flows from operating activities LO P$2$

Salud Company reports the following information.

Selected Annual Income Statement Data Selected Year$-$End Balance Sheet Data

Net income $ $425,000$ Accounts receivable increase $ $46,400$

Depreciation expense $82,500$ Prepaid expenses decrease $17,700$

Gain on sale of machinery $25,100$ Accounts payable increase $8,800$

Wages payable decrease $2,500$

Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December $31.$

Note: Amounts to be deducted should be indicated with a minus sign.