Statement of Cash Flows (partial) Cash flows from operating activities $185,000.00 2 Net income Adjustments to reconcile net income to net cash flow from operating activities: 96,000.00 4 Depreciation s Changes in current operating assets and liabilities: 6 Decrease in accounts receivable (5,450.00) 7Decrease in prepaid expenses 900.00 8 Increase in salaries payable 3,200.00 Increase in inventories (11,200.00) 10 Decrease in accounts payable (18,500.00) Net cash flow from operating activities 11 $260,850.00 The net income reported on the income statement for the current year was $185,000. Depreciation current asset and current liability accounts at the beginning and end of the year are as follows: recorded on equipment and a building amounted to $96,000 for the year. Balances of the End of Year Beginning of Year Cash $ 75,900 $ 86,150 Accounts receivable (net) 84,550 90,000 Inventories 186.200 175,000 Prepaid expenses 3,600 4,500 Accounts payable (merchandise creditors) 91,500 110,000 Salaries payable 7,200 4,000 Required: a. Prepare the Cash Flows from Operating Activities section of the statement of cash lows using the indirect method. Refer to the Amount Descriptions ist provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required b. If the direct method had been used, would the net cash flow from operating activities have been the same