The net income reported on the income statement for the current year was $214,000. Depreciation recorded on equipment and a building amounted to $99,300 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 €œCash 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 Beginning of Year $ 86,150 88,750 178,000 5,100 115,000 4,900 $ 75,900 82,150 181,600 4,800 93,700 6,500 Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable