Cash flows from (used for) operating activities-indirect method The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income $53,800 31,370 322,500 The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Increase (Decrease) $8,380 (4,770) (1,790) (5,680) Accounts payable Income taxes payable Dividends payable 1,790 1,250 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet 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 out flows, cash payments, decreases in cash, or any negative adjustments. 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 out flows, cash payments, decreases in cash, o 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: 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.