Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $246,600. Depreciation recorded on equipment and a building amounted to $73,700 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	$68,060		$70,780
Accounts receivable (net)	86,300		87,340
Inventories	170,150		150,480
Prepaid expenses	9,460		9,980
Accounts payable (merchandise creditors)	76,020		78,990
Salaries payable	10,960		9,840

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:
	$fill in the blank 7dc3dc078fadfb1_2
Adjustments to reconcile net income to net cash flow from operating activities:
	fill in the blank 7dc3dc078fadfb1_4
Changes in current operating assets and liabilities:
	fill in the blank 7dc3dc078fadfb1_6
	fill in the blank 7dc3dc078fadfb1_8
	fill in the blank 7dc3dc078fadfb1_10
	fill in the blank 7dc3dc078fadfb1_12
	fill in the blank 7dc3dc078fadfb1_14
Net cash flow from operating activities		$fill in the blank 7dc3dc078fadfb1_15

b. If the direct method had been used, would the net cash flow from operating activities have been the same?