The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount to $62,500 for the year. Balances of the current assets and current liabilities accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $ 56,000 $ 59,500 Accounts Receivable (net) 71,000 73,400 Inventories 140,000 126,500 Prepaid Expenses 7,800 8,400 Accounts Payable (merchandise creditors) 62,600 66,400 Salaries Payable 9,000 8,250 Required: (1) Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method. Refer to the list of Amount Descriptions 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. (2) If the direct method had been used, would the net cash flow from operating activities have been the same? Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method. Refer to the list of Amount Descriptions 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. Statement of Cash Flows (partial) 1 Cash flows from operating activities: 2 Net income 3 Adjustments to reconcile net income to net cash flow from operating activities: 4 5 Changes in current operating assets and liabilities: 6 7 8 9 10 11 Amount Descriptions Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Decrease in prepaid expenses Decrease in salaries payable Depreciation Increase in accounts payable Increase in accounts receivable Increase in inventories Increase in prepaid expenses Increase in salaries payable Net cash flow from operating activities Net cash flow used for operating activities Net income Net loss