(Appendix) During the current year, Nash's Business earned net income of \(\$ 56000\). Depreciation expense of \(\$ 11000\) was included in the calculation of net income. Nash's accounting records show the following beginning and ending balances in its current assets and current liabilities for the year.

Required:
a Using the indirect method, prepare the cash flows from the operating activities section of Nash's cash flow statement for the current year.
b What does your answer to

(a) reveal compared with the business' net income?

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Accounts Accounts receivable Inventory Prepaid rent Accounts payable Salaries payable Ending Balance $113 400 68 800 4000 51 200 2600 Beginning Balance $74 400 86 200 0 66 000 0