26. The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount to $62,500 for the year. Balances of the current assets and current liabilities accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $ 56,000 $ 59,500 Accounts Receivable (net) 71.000 73,400 Inventories 140,000 126,500 Prepaid Expenses 7,800 8,400 Accounts Payable (merchandise creditors) 62,600 66,400 Salaries Payable 9,000 8,250 (b) Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method. If the direct method had been used, would the net cash flow from operating activities have been the same? Explain. 27. Dickinson Company reported net income of $155,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. In addition, a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale was sold for $75,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $20,000 $15,000 Accounts Receivable 19,000 32,000 Inventories 50,000 65,000 Accounts Payable 12,000 18,000 Prepare the Cash flows from operating activities section of the statement of cash flows using the indirect method