Preparing the Operating Activities Section The data below were provided by the accounting records of Franklin Company. Net income accrual basis) $80.000 Depreciation expense 16,000 Decrease in salaries payable 2,400 Decrease in trade accounts receivable 3,600 Increase in merchandise inventory 5,000 Amortization of patent 200 Increase in long-term liabilities 20.000 Sale of capital stock for cash 50.000 Amortization of premium on bonds payable 400 Accounts payable increase 8,000 Stock dividend issued 20,000 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 premium on bonds payable Decrease in accounts receivable Increase in merchandise inventory Increase in accounts payable Increase in long-term liabilities Decrease in salaries payable Sale of capital stock for cash Stock dividend issued Net cash provided (used) by operating activities $ Preparing the Operating Activities Section The data below were provided by the accounting records of Franklin Company. Net income accrual basis) $80.000 Depreciation expense 16,000 Decrease in salaries payable 2,400 Decrease in trade accounts receivable 3,600 Increase in merchandise inventory 5,000 Amortization of patent 200 Increase in long-term liabilities 20.000 Sale of capital stock for cash 50.000 Amortization of premium on bonds payable 400 Accounts payable increase 8,000 Stock dividend issued 20,000 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 premium on bonds payable Decrease in accounts receivable Increase in merchandise inventory Increase in accounts payable Increase in long-term liabilities Decrease in salaries payable Sale of capital stock for cash Stock dividend issued Net cash provided (used) by operating activities $