Indirect Method - Preparing the Operating Activities Section Pit Corp. reported net income of $450,000 for the year ended December 31, 2020. Depreciation expense was $48,000 and was reported as part of operating expenses in the income statement Following are changes in account balances from December 31, 2019 to December 31, 2020. Description Amount increase in accounts receivable $21.000 increase in accounts payable 8.000 increase in inventories 75,000 Decrease in salaries payable 44.000 Decrease in prepaid insurance 12.000 Prepare the operating activities section of the statement of cash flows for Pitt Company using the indirect method. Cash Flows from Operating Activities Net Income s 450,000 stments Depreciation expense 48,000 Increase in accounts receivable (21,000) Increase in inventones 8.000 x Decrease in prepaid insurance (75,000) X Increase in accounts payable (44,000) x Decrease in salaries payable 12,000 X Net cash provided by operating activities S 378,000