Exercise 14-1A Use the indirect method to determine cash flows from operating activities LO 14-1 An accountant for Southern Manufacturing Companies (SMC) computed the following information by making comparisons between SMC's 2016 and 2017 balance sheets. Further information was determined by examining the company's 2017 income statement Required For each item described 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 indicate any items that do not affect net cash flow from operating activities because they are reported as investing or financing activities. 1 The amount of cash dividends paid to the stockholders 2. The amount of a decrease in the balance of an Uneamed Revenue account 3. The amount an increase in the balance of an Inventory account 4. The amount of an increase in the balance of a Land account 5. The amount of a decrease in the balance of a Prepaid Rent account 6. The amount of an increase in the balance of a Treasury Stock account 7. The amount of an increase in the balance of the Accounts Receivable account. 8. The amount of a loss arising from the sale of land, 9 The amount of an increase in the balance of the other Operating Expenses Payable account 10. The amount of a decrease in the balance of the Bonds Payable account 11. The amount of depreciation expense shown on the income statement. Account Title Accounts receivable Accounts payable 2017 2016 $15,200 $20,400 $ 7,750 $10,200 The 2017 income statement showed net income of $27,400. Required a. Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with minus sign.) Cash flows from operating activities Net cash flow from operating activities $ 0