Chapter 23, Problem 5BE

To determine

Operating activities: The items that are directly linked with the transactions that affect the net income of the company are termed as operating activities.

Indirect method: Indirect method is the most widely used method to compute cash (used) provided by operating activities. Under this method, net cash flow is determined by adding back noncash expense and losses to net income and deducting all noncash income and gains from net income.

To determine the cash flows from operating activities section using the indirect method.

Given information: The income statement for B Corporation has been provided in the question.