- Exercise 12-5 Indirect: Cash flows from operating activities LO P2 4.25 points Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.) Selected 2017 Income Statement Data Net income $376,000 Depreciation expense 44,800 Amortization expense 8,900 Gain on sale of plant assets 6,100 eBook Selected Year-End 2017 Balance Sheet Data Accounts receivable decrease $162,400 Inventory decrease 48,000 Prepaid expenses increase 5,300 Accounts payable decrease 10,200 Salaries payable increase 2,300 Hint lo i to je f. 13 Cash flows from operating activities Ask Adjustments to reconcile net income to net cash provided by operating activities Print References