Cash Flows from (Used for) Operating Activities

The income statement disclosed the following items for the year:

Depreciation expense	$35,600
Gain on disposal of equipment	20,750
Net income	245,100

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

	Increase (Decrease)
Accounts receivable	$5,540
Inventory	(3,150)
Prepaid insurance	(1,180)
Accounts payable	(3,760)
Income taxes payable	1,180
Dividends payable	830

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:
	$fill in the blank 3436fdfa7fd0069_2
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
	fill in the blank 3436fdfa7fd0069_4
	fill in the blank 3436fdfa7fd0069_6
Changes in current operating assets and liabilities:
	fill in the blank 3436fdfa7fd0069_8
	fill in the blank 3436fdfa7fd0069_10
	fill in the blank 3436fdfa7fd0069_12
	fill in the blank 3436fdfa7fd0069_14
	fill in the blank 3436fdfa7fd0069_16
Net cash flows from operating activities		$fill in the blank 3436fdfa7fd0069_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.