Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $272,800. Depreciation recorded on equipment and a building amounted to $81,600 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	$73,660		$78,080
Accounts receivable (net)	93,400		96,350
Inventories	184,150		166,000
Prepaid expenses	10,240		11,010
Accounts payable (merchandise creditors)	82,280		87,140
Salaries payable	11,860		10,850

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:
	$
Adjustments to reconcile net income to net cash flow from operating activities:
Changes in current operating assets and liabilities:
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?