Exercise 12-1A (Static) Use the indirect method to determine cash flows from operating activities LO 12-1 An accountant for Southern Manufacturing Companies (SMC) computed the following information by making comparisons between SMC's Year 1 and Year 2 balance sheets. Further information was determined by examining the company's Year 2 income 5 tatement. Required For each item described in the the list below, indicate whether the amount should be added to or subtracted from the amount of net income when determining the amount of net cash flow from operating activities using the indirect method. Also identify any items that do not affect net cash flow from operating activities because they are reported as investing or financing activities