Cash Flows from Operating Activities-Indirect Method The income staternent disclosed the following items for the year: The chenges In the current asset and liability accounts for the year are as follows: a. Prepare the "Cash flows from operating activities" section of the statement of cash fows, using the indirect method, Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. a. Prepare the "Cash flows frim operating activities" section of the statement of cash flows, using the indirect method. Use the minus slign to indicate cash out flown, cash payments, decreases in cash, or any negative adjustments: Statement of Cash Flows (partial) b. Why is net cash flows from operating activities different than net income? Cash flows from operating activities is based on of accounting, whereas net income is computed using of accounting