Curwen Inc. reported net cash flow from operating activities of $228,100 on its statement of cash flows for a recent year ended December 31. The following information was reported in the cash flows from operating activities section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $5,500 Decrease in inventories 13,700 Depreciation Gain on sale of investments Increase in accounts payable Increase in prepaid expenses Increase in accounts receivable a. Determine the net income reported by Curwen Inc. for the year ended December 31. 21,000 9,500 3,800 2,300 10,300 b. Curwen's net income differed from cash flows from operations because of the following: 1. Depreciation expense, which has no effect on cash flows from operating activities. 2. Gain on the sale of investments is reported in investing activities section of the cash flow statement. 3. Changes in current operating assets and liabilities that are added or deducted, depending on their effect on cash flow but not in the income statement. 4. Operating expenses are deducted from income but are added in the cash flow statement. 5. Dividends are deducted from the investing activities in cash flow statement but are a charge against income in the income statement