MULTIPLE CHOICE, DROP DOWN MENUS:

The net income reported on the income statement for the current year was $214,600. Depreciation recorded on equipment and a building amounted to $64,200 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 Accounts receivable (net) $55,150 69,930 137,880 $57,910 71,460 123,120 8,170 Inventories Prepaid expenses 7,670 64,630 Accounts payable (merchandise creditors) Salaries payable 61,600 8,880 8,050 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? Decrease in prepaid expenses Depreciation Increase in inventories Net income Decrease in accounts payable Decrease in accounts receivable Depreciation Increase in accounts receivable Decrease in accounts receivable Decrease in salaries payable Depreciation Increase in accounts receivable Decrease in inventories Increase in accounts receivable Increase in inventories Increase in prepaid expenses Decrease in prepaid expenses Increase in accounts payable Increase in accounts receivable Increase in prepaid expenses Decrease in accounts payable Decrease in salaries payable Depreciation Increase in accounts payable Decrease in salaries payable Increase in accounts receivable Increase in prepaid expenses Increase in salaries payable No Yes