Cash Flows from Operating ActivitiesIndirect Method The income statement disclosed the following items for the year: $34,900 Depreciation expense Gain on disposal of equipment 20,390 Net income 259,000 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $5,440 Inventory (3,100) Prepaid insurance (1,160) Accounts payable (3,690) Income taxes payable 1,160 Dividends payable 820 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) For the year ended Dec. 31, -- Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Gain on disposal of equipment III IO Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in income taxes payable Net cash flow from operating activities $