1. 2.

Cash Flows from Operating Activities-Indirect Method Staley Inc. reported the following data: Net Income $203,000 Depreciation expense Loss on disposal of equipment Increase in accounts receivable 63,900 33,100 15,400 12,900 Increase in accounts payable Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Changes in Current Operating Assets and LiabilitiesIndirect Method Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $13,100 $12,900 Inventory 54,000 54,700 Accounts payable 20,200 20,000 Dividends payable 19,000 20,000 Adjust net income of $92,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities