Reporting Net Cash Flow from Operating Activities}

The following information is available for Bernadetti Corporation for 2018:

\section*{Required:}
1. Compute the net cash flows from operating activities using the indirect method.
2. CONCEPTUAL CONNECTION: What are the causes of the major differences between net income and net cash flow from operating activities?
\section*{Exercise

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Net income $179,200 Decrease in income tax payable $ 4,270 Decrease in accounts receivable 7,900 Increase in notes payable (due 2022) 50,000 Increase in inventory 18,300 Depreciation expense 44,700 Decrease in prepaid rent 2,100 Loss on disposal of equipment 11,000 Increase in salaries payable 4,410