Preparing the Operating Activities Section The data below were provided by the accounting records of Marshall Company. Net income (accrual basis) $50,000 Depreciation expense 6,000 Increase in salaries payable 1,000 Increase in trade accounts receivable 1,800 Decrease in merchandise inventory 2,300 Amortization of patent 200 Decrease in long-term liabilities 10,000 Sale of capital stock for cash 25,000 300 Amortization of discount on bonds payable Required Prepare the reconciliation of net income with cash flow from operations for inclusion in the statement of cash flows (indirect method). Note: If an item is not included in the operating activities section, leave the answer blank (zero). Cash flows from Operating Activities Net income $ Adjustments: Depreciation expense Amortization expense-patent Amortization of discount on bonds payable Sale of capital stock for cash Increase in accounts receivable Decrease in merchandise inventory Decrease in long-term liabilities Increase in salaries payable Net cash provided (used) by operating activities $