The net income reported on the income statement for the current year was $222,000. Depreciation recorded on equipment and a building amounted to $98,400 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

Line Item Description	End of Year	Beginning of Year
Cash	$75,900	$84,610
Accounts receivable (net)	82,150	89,120
Inventories	181,600	175,900
Prepaid expenses	4,450	5,100
Accounts payable (merchandise creditors)	98,370	115,000
Salaries payable	6,500	4,550

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 blank Statement of Cash Flows (partial)

Line Item Description	Amount	Amount
Cash flows from (used for) operating activities:
DepreciationIncrease in inventoriesNet incomeDecrease in prepaid expensesDecrease in salaries payable	$- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Decrease in accounts payableDecrease in accounts receivableDepreciationIncrease in accounts receivableNet income	- Select -
Changes in current operating assets and liabilities:
Decrease in accounts receivableDecrease in salaries payableDepreciationIncrease in accounts receivableNet income	- Select -
Decrease in inventoriesIncrease in accounts receivableIncrease in inventoriesIncrease in prepaid expensesNet income	- Select -
Decrease in prepaid expensesIncrease in accounts payableIncrease in accounts receivableIncrease in prepaid expensesNet income	- Select -
Decrease in accounts payableDecrease in salaries payableDepreciationIncrease in accounts payableNet income	- Select -
Decrease in salaries payableIncrease in accounts receivableIncrease in prepaid expensesIncrease in salaries payableNet income	- Select -
Net cash flows from operating activitiesNet cash flows used for operating activities		$- Select -

Question Content Area

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