The income statement disclosed the following items for 2016:

Depreciation expense	$65,140
Gain on disposal of equipment	29,350
Net income	408,700

Balances of the current assets and current liability accounts changed between December 31, 2015, and December 31, 2016, as follows:

	Increase (Decrease)
Accounts receivable	$8,540
Inventory	(4,200)
Prepaid insurance	(1,600)
Accounts payable	(6,220)
Income taxes payable	1,620
Dividends payable	2,270

Required:

A.

Prepare the Cash Flows from Operating Activities section of the statement of cash flows A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year. , 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 than net income.