The following information is available for Cornelius Inc.:

Required:
1. Prepare the net cash flows from operating activities using the indirect method.
2. Explain why Cornelius was able to report net cash flow from operating activities that was higher than net income. Explain why this is important to financial statementusers.

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Selected Income Statement Information Amount $11,000 38,000 Depreciation expense Net income Selected Balance Sheet Information Accounts receivable Inventory Accounts payable Beginning Balance $21,000 47,000 24,000 Ending Balance $27,000 43,000 32,000