The net income reported on the income statement for the current year was $246,800. Depreciation recorded on equipment and a building amounted to $73,800 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
Cash	$61,700		$65,400
Accounts receivable (net)	78,240		80,700
Inventories	154,250		139,040
Prepaid expenses	8,580		9,220
Accounts payable (merchandise creditors)	68,920		72,990

Salaries payable

9,930

9,090

Question Content Area

a. Prepare the Cash Flows from (used for) 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.

blank Statement of Cash Flows (partial) blank

Cash flows from (used for) operating activities:
Accounts payableDecrease in prepaid expensesDepreciationIncrease in inventoriesNet income	$- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Accounts payableDecrease in accounts payableDecrease in accounts receivableDepreciationIncrease in accounts receivable	- Select -
Changes in current operating assets and liabilities:
Accounts payableDecrease in accounts receivableDecrease in salaries payableDepreciationIncrease in accounts receivable	- Select -
Accounts payableDecrease in inventoriesIncrease in accounts receivableIncrease in inventoriesIncrease in prepaid expenses	- Select -
Accounts payableDecrease in prepaid expensesIncrease in accounts payableIncrease in accounts receivableIncrease in prepaid expenses	- Select -
Accounts payableDecrease in accounts payableDecrease in salaries payableDepreciationIncrease in accounts payable	- Select -
Accounts payableDecrease in salaries payableIncrease in accounts receivableIncrease in prepaid expensesIncrease in salaries payable	- Select -
Net cash flows from operating activities		$fill in the blank d943d2feb078faf_15

Question Content Area

b. If the direct method had been used, would the net cash flow from operating activities have been the same?