The income statement disclosed the following items for year:

Depreciation expense	$50,100
Gain on disposal of equipment	29,220
Net income	360,300

Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for year: Depreciation expense $50,100 Gain on disposal of equipment 29,220 Net income 360,300 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $7,800 (4,440) Inventory Prepaid insurance (1,670) Accounts payable (5,290) Income taxes payable 1,670 Dividends payable 1,170 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 out flows, cash cash, or any negative adjustments. payments, decreases Statement of Cash Flows (partial) For the year ended xxx Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation (Palta For the year ended xxx Cash flows from operating activities: Net income $ Adjustments to reconcile net inoome to net cash flow from operating activities: DepreciationV Gain on disposal of equipment Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in income taxes payable Net cash flow from operating activities Feedback Y Check My Work Compute the increases and decreases the current asset/liability accounts over the period. What affect would these changes have on cash? Learning Objective 1, Learning Objective 2 . Why is net cash flows from operating activities different than net income? of accounting, whereas net income is computed using accrual basis of accounting. Cash flows from operating activities is based on cash basis