M12-5 (Static) Computing Cash Flows from Operating Activities (Indirect Method) [LO 12-2] The two independent cases are listed below: Case A Case B Year 2 Year 1 Year 2 Year 1 Sales Revenue $ 11,000 $ 9,000 $ 21,000 $ 18,000 Cost of Goods Sold 6,000 5,500 12,000 11,000 Gross Profit 5,000 3,500 9,000 7,000 Depreciation Expense 1,000 1,000 1,500 1,500 Salaries and Wages Expense 2,500 2,000 5,000 5,000 Net Income $ 1,500 $ 500 $ 2,500 $ 500 Accounts Receivable $ 300 $ 400 $ 750 $ 600 Inventory 750 500 Accounts Payable 730 800 800 700 800 850 Salaries and Wages Payable 1,000 1,200 200 250 Required: Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be delucted should be indicated with a minus sign.) Case A Case B Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Required: Show the operating activities section of the statement of cash flows for year 2 should be indicated with a minus sign.) Case A Case B Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Changes in Assets and Liabilities $ 0 $