Determining Net Income from Net Cash Flows from Operating Activities Curwen Inc. reported net cash flows from operating activities of $357,500 on its statement of cash flows for a recent year ended December 31. The following information was reported in the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $7,700 Decrease in inventories 19,140 Depreciation 29,480 Gain on sale of investments 13,200 Increase in accounts payable 5,280 Increase in prepaid expenses 2,970 Increase in accounts receivable 14,300 a. Determine the net income reported by Curwen Inc. for the year ended December 31. b. Curwen's net income differed from net 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