Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $206,000. Depreciation recorded on equipment and a building amounted to $61,600 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 $53,770 $55,920 Accounts receivable (net) 68,180 69,010 Inventories 134,430 118,890 Prepaid expenses 7,470 7,880 Accounts payable (merchandise creditors) 60,060 62,410 Salaries payable 7,770 8,660 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 out flows, 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