Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $293,700. Depreciation recorded on equipment and a building amounted to $87,800 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 $79,590 $84,370 Accounts receivable (net) 100,920 104,110 198,980 179,370 Inventories Prepaid expenses Accounts payable (merchandise creditors) 11,060 11,900 88,900 94,160 Salaries payable 12,810 11,730 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: 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 0 1 01101 Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Increase in salaries payable Net cash flow from operating activities o Feedback b. If the direct method had been used, would the net cash flow from operating activities have been the same? Yes