Problem 21-10 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. Some elements necessary to complete the schedule are missing. Required: Complete the schedule by determining each of the following missing elements: (Amounts to be deducted should be indicated with a minus sign.) Cash flows from Operating Activities Indirect Method Income Statement Direct Method Net income Adjustments: 300 Decrease in accounts receivable Sales 6 Cash received from customers (24) (Not reported-no cash effect) Gain on sale of equipment 24 Gain on sale of equipment Increase in inventory (12) 18 Cash paid to suppliers 6 Cash paid to employees Cost of goods sold Increase in accounts payable (174) Salaries expense (42) (36) (9) Depreciation expense Decrease in bond discount Depreciation expense 9 Cash paid for depreciation Interest expense 3 Cash paid for interest (9) Insurance expense 9 Cash paid for insurance (21) Decrease in prepaid insurance 6 (Not reported-no cash effect) Loss on sale of land (6) Loss on sale of land Income tax expense (27) Increase in income tax payable Cash paid for income taxes (21) 219 Net cash flows from operating activities 54 Net cash flows from operating activities Net Income $ 54