Cash Flows from (Used for) Operating Activities

The income statement disclosed the following items for the year:

Depreciation expense	$39,200
Gain on disposal of equipment	22,870
Net income	320,600

The changes in the current asset and liability accounts for the year are as follows:

	Increase (Decrease)
Accounts receivable	$6,110
Inventory	(3,480)
Prepaid insurance	(1,300)
Accounts payable	(4,140)
Income taxes payable	1,300
Dividends payable	910

a. Prepare the Cash Flows from (used for) 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 (used for) operating activities:
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Changes in current operating assets and liabilities:
	fill in the blank 6b728afa8f8afa8_8
Net cash flows from operating activities		$fill in the blank 6b728afa8f8afa8_17

b. Why is net cash flows from operating activities different than net income?

Cash flows from operating activities is based on of accounting, whereas net income is computed using of accounting.