Cash Flows from Operating Activities--Indirect Method The net income reported on the income statement for the current year was $296,800. Depreciation recorded on equipment and a building amounted to $58,700 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 $74,500 $77.480 Accounts receivable (net) 94,470 95,610 Inventories 186,250 164,720 Prepaid expenses 10,360 10,920 Accounts payable (merchandise creditors) 83,220 86,470 Salaries payable 11,990 10,770 a. Prepare the "Cash Flows from Operating Activities section of the statement of cash lows, 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: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventories Decrease in prepaid expenses Increase in accounts payable Decrease in salaries payable 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? Yes