Changes in Current Operating Assets and Liabilities-Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Adjust net income of $79,100 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $ X Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $143,500. Depreciation recorded on store equipment for the year amounted to $23,700. Balances of the current asset and current liability accounts at the beginning and end of the year are follows: 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, cas payments, decreases in cash, or any negative adjustments. 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. b. Cash flows from operating activities differs from net income because it does not use the the income statement when of accounting. For example revenues are recorded on Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for year: The changes in the current asset and liability accounts for the year are as follows: 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. Ctatomont nf Cach FIninc (nartial)