a. 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 outflows, cash payments, decreases in cash, or any negative adjustments. b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $146,900. Depreciation recorded on store equipment for the year amounted to $24,200. Balances of the current asset and current liability accounts at the beginning and end the year are as follows: a. 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 outflows, cash payments, decreases in cash, or any negative adjustments