Required information [The following information applies to the questions displayed below] Green Brands, Incorporated (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise Inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue The Year 2 income statement is shown next Income Statement Sales Cost of goods sold Gross margin Service revenue Insurance expense Year 2 $ 22,500 Year 1 $27,600 57,100 49,700 17,600 25,000 23,700 18,100. 4,800 4,000 850 2,750 $ 606,000 (382,000) 224,000 4,200 (38,000 Salaries expense (159,000) Depreciation expense (4,500) Operating income 26,700 Gain on sale of equipment 3,900 b. Prepare the operating activities section of the statement of cash flows using the indirect method for Year 2. Note: Amounts to be deducted should be indicated with a minus sign. GREEN BRANDS, INCORPORATED Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Net income Add: Increase in accounts receivable Increase in unearned service revenue Deduct Decrease in accounts payable Decrease in prepaid insurance Decrease in salaries payable Add noncash expenses Depreciation expense Add: Gain on sale of equipment $ 30,600 5,100