Exercise 12-5 Indirect: Cash flows from operating activities LO P2 Fitz Company reports the following information. Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $397,000 Accounts receivable decrease $144,800 Depreciation expense 48,000 Inventory decrease 49,500 Amortization expense 8,100 Prepaid expenses increase 5,200 Gain on sale of plant assets 6,500 Accounts payable decrease 10,900 Salaries payable increase 1,700 Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31 (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities