The net income reported on the income statement for the current year was $255,800. Depreciation recorded on equipment and a building amounted to $53,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

a. Prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method.
b. If the direct method had been used, would the net cash flow from operating activities have been the same?Explain.

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End of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable 42,000 65,400 125,900 5,800 61,400 8,300 Beginning of Year 44,200 67,000 112,600 6,000 67,500 7,900