Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income $38,300 22,340 225,000 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $5,960 Inventory (3,400) Prepaid insurance (1,270) Accounts payable (4,040) Income taxes payable 1,270 Dividends payable 890 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) 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: 000 00 Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income? Cash flows from operating activities is based on i of accounting, whereas net income is computed using, of accounting.