The changes in the current asset and liability accounts for the year are as follows:

Depreciation expense	$49,390
Gain on disposal of equipment	38,710
Net income	436,600

The changes in the current asset and liability accounts for the year are as follows:

	Increase (Decrease)
Accounts receivable	$8,550
Inventory	(6,130)
Prepaid insurance	(1,690)
Accounts payable	(4,990)
Income taxes payable	1,210
Dividends payable	2,080

Required:

A.	Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list 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.	Briefly explain why net cash flows from operating activities is different from net income.

Please exact answers. Thank you!

Instructions Statement of Cash Flows-Operating Activities Statement of Cash Flows (partial) 1 Cash flows from operating activities: 2 3 Adjustments to reconcile net income to net cash flow from operating activities: 4 5 6 Changes in current operating assets and liabilities: 7 8 9 10 11 12