Show Me How Operating Activities Section-Indirect Method The following account balances for the noncash current assets and current liabilities of Suffolk Company are available: December 31 2017 2016 Accounts receivable Inventory Prepaid rent Totals $42,860 30,090 17,410 $90,360 $25,840 6,060 14,510 $46,410 $35,480 39,880 14,610 $89,970 $18,840 9,950 11,640 $40,430 Accounts payable Income taxes payable Interest payable Totals Net income for 2017 is $41,410. Depreciation expense is $21,860. Assume that all sales and all purchases are on account. Required: Required: 1. Prepare the Operating Activities section of the statement of cash Mows using the indirect method. Use the minus sign to indicate cash payments, cash outflows, or decreases in cesh. Suffolk Company Partial Statement Cash Flows For the Year Ended December 31, 2017 Cash Provided by Operating Activities Net income s 41.410 Adjustments to reconcile net income to net cash provided by operating activities: Increase in income taxes payable x Increase in accounts receivable Decrease in Inventory Increase in prepaid rent Increase in accounts payable Decrease in Income taxes payable Increase in interest payable Net cash inflow from operating activities s Fellow Check My Work 2. Net cash inflow from operating activities is and the primary reason why it is higher than net income is decrease in Inventory X . Other reasons for the higher amount of net cash inflow from operating activities are increase in accounts payable and increase in accounts receivable X