Cash Flows from Operating Activities-- Indirect Method The net income reported on the income statement for the current year was $250,900. Depreciation recorded on equipment and a building amounted to $75,000 for the year. 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 $64,730 $67,970 Accounts receivable (net) 82,080 83,870 Inventories 161,830 144,500 Prepaid expenses 9,000 9,580 Accounts payable (merchandise creditors) 72,300 75,850 Salaries payable 10,420 9,450 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 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: 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. 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 abilities: 1 bill Net cash flow from operating activities b. If the direct method had been used, would the net cash flow from operating activities have been the same