eBook Show Me How Calculator Cash Flows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was $302,200. Depreciation recorded on equipment and a building amounted to $90,400 for the year, Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $77,670 $80,780 Accounts receivable (net) 98,490 99,680 Inventories 194,180 171,740 Prepaid expenses 10.800 11,390 Accounts payable (merchandise creditors) 86,760 90,150 Salarles payable 12,500 11,230 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 outflows, cash payments, decreases in cash, or any negative adjustments Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and abilities: Check My Work Previous Next Email instructor Save and Exit Submk Assignment for Grading MacBook Air eBook Show Me How Calculator HOCUNASTECIVO 99 Inventories 194,180 171,740 Prepaid expenses 10,800 11,390 Accounts payable (merchandise creditors) 86,760 90,150 Salaries payable 12,500 11,230 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 outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities b. If the direct method had been used, would the net cash flow from operating activities have been the same? Check My Work Previous Next