The net income reported on the income statement for the current year was $203,900. Depreciation recorded on equipment and a building amounted to $61,000 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	$55,460		$58,230
Accounts receivable (net)	70,320		71,860
Inventories	138,650		123,800
Prepaid expenses	7,710		8,210
Accounts payable (merchandise creditors)	61,950		64,980
Salaries payable	8,930		8,090

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.

Cash flows from (used for) operating activities: $ Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities $ b. If the direct method had been used, would the net cash flow from operating activities have been the same