PA12-2 Computing Cash Flows from Operating Activities (Indirect Method) [LO 12-2] The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below Income Statement $55,600 Sales Revenue Expenses Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Insurance Expense Interest Expense Utilities Expense 24,500 2,700 9,700 5,200 2,250 2,150 1,750 Net Income $ 7,350 Selected Balance Sheet Accounts Ending Beginning Balances Balances $ 570 920 430 29 27 86 24 600 735 480 Accounts Receivable Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries and Wages Payable Utilities Payable 32 53 17 Required Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)