The net income reported on the income statement for the current year was $240,000. Depreciation recorded on equipment and a building amounted to $72,000 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 67,200 84,000 168,000 9,600 72,000 12,000 Beginning of Year Cash Accounts receivable (net Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable $ 72,000 88,800 150,000 10,800 78,000 10,200