The net income reported on the income statement for the current year was \$208,700 Depreciation recorded on equipment and a building amounted to $62,400 for the year Balances of the current asset and current liability accounts at the beginning and end of the year are as follows

Cash Flows from Operating Activities--Indirect Method The net income reported on the income statement for the current year was $208,700. Depreciation recorded on equipment and a building amounted to $62,400 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year $52,180 $55,310 Accounts receivable (net) 66,160 68,250 Inventories 130,450 117,590 Prepaid expenses 7,250 7,800 Accounts payable (merchandise creditors) 58,290 61,730 Salaries payable 8.400 7,690 a. Prepare the "Cash Flows from Operating Activities section of the statement of cash rows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. C Statement of Cash Flows (partial) hrows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Deprecation Changes in current operating assets and lates: Decrease in accounts receivable 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 outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in Inventories Decrease in prepaid expenses Decrease in accounts payable Increase in salaries payable Net cash flow from operating activities b. If the direct method had been used, would the net cash flow from operating activities have been the same? Yos