Required information E12-3 Understanding the Computation of Cash Flows from Operating Activities (Indirect Method) [LO 12-2] [The following information applies to the questions displayed below.] Suppose your company sells services for $485 cash this month. Your company also pays $340 in salaries and wages, which includes $175 that was payable at the end of the previous month and $165 for salaries and wages of this month. E12-3 Part 2, 3 and 4 Calculate the amount that should be reported as net cash flow from operating activities. Calculate the amount that should be reported as net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).