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 The Year 2 income statement showed net income of $27,900. Cash flows from operating activities Net income Plus: Decrease in accounts receivable Year 2 $12,700 8,450 Required a. Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.) Net cash flow from operating activities Year 1 $20,400 9,800

Exercise 12-2A (Algo) Use the indirect method to determine cash flows from operating activities LO 121 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 The Year 2 income statement showed net income of $27,900 Required o. Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with o minus sign.)