1 To determine cash payments for merchandise for the statement of cash flows using the direct method, a decrease in accounts payable is added to the cost of goods sold. Assume all accounts payable are owed to merchandise suppliers. True False 2 The net income reported on the income statement for the current year was $304,076. Depreciation recorded on fixed assets and amortization of patents for the year were $38,705, and $11,134, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning $63,943 $48,900 Cash Accounts receivable Inventories 108.-455 121,297 90,549 6,687 79,975 103,421 3,149 46,021 Prepaid expenses Accounts payable (merchandise creditors) What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? Select the correct answer $379,629 $334,522 $316,453 $410,045