Exercise 12-3A Use the indirect method to determine cash flows from operating activities LO 12-1 Shim Company presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Shim's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable Prepaid rent Interest receivable Accounts payable Salaries payable Unearned revenue $31,626 $37,951 1,382 1,139 298 18,514 12,617 2,579 2,947 3,363 4,484 372 The income statement reported a $1,320 gain on the sale of equipment, an $720 loss on the sale of land, and $3,400 of depreciation expense. Net income for the period was $50,961. Required 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 Plus Less: Net cash flow from operating activities