Fitz Company reported the following information for the year ended December 31: Net income of $150,000; Depreciation expense of $30,000; Increase in accounts receivable of $20,000; Decrease in accounts payable of $10,000. Using the indirect method, the cash flows from operating activities section of Fitz Company's statement of cash flows would show cash flows of $150,000 - $30,000 + $20,000 - $10,000 = $130,000.

1. Exercise 12-5 (Algo) Indirect: Cash flows from operating activities LO P2 Fitz Company reports
the following information. Use the indirect method to prepare the operating activities section of
its statement of cash flows for the year ended December 31 . (Amounts to be deducted should be
indicated with a minus sign.)