Exercise 21-19 Relationship between the income statement and cash flows from operating activities (direct method and indirect method) [LO21-3, 21-4] The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods. The amounts for income statement elements are missing Cash Flows from Operating Activities Indirect Method Income Statement Dire Net income Adjustments: $ Decrease in accounts receivable 11 Cash received from custo Sales Cost of goods sold ? Increase in inventory (22) (35) Cash paid to suppliers Decrease in accounts payable Increase in salaries payable Depreciation expense Salaries expense Depreciation expense Insurance expense Loss on sale of land Income tax expense Net income 12 Cash paid to employees 18 Not reported-no cash ef 19 Cash paid for insurance 15(Not reported-no cash ef 15Cash paid for income tax Decrease in prepaid insurance Loss on sale of land ? Increase in income tax payable $ Net cash flows from operating activities cash flows from oper Required: Deduce the missing amounts and prepare the income statement. Income Statement Sales