cash flows form operating activities- indetect method

Cash Flows from Operating Activities--Indirect Method The income statement disclosed the following items for the years Depreciation expense $35,600 Gain on disposal of equipment 20,780 Net income 222,300 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $5,550 Inventory (3,160) Prepaid insurance (1,180) Accounts payable (3,760) Income taxes payable 1,180 Dividends payable 830 a. Prepare the "Cash flows from operating activities' section of the statement of cash flons, using the Indirect method. Use the minus sign to indicate cash out tows cash payments, decreases in cash, or any negative adjustments Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and abilities: O ll ni Net cash flow from operating activities b. Why is net cash flows from operating activities different than net income? cash flows from operating activities is based on of accounting, whereas net income is computed using of accounting