Cash Flows from Operating Activities --Indirect Method The income statement disclosed the following items for the year: Depreciation expense $55,500 Gain on disposal of equipment 32,400 Net income 346,000 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $8,650 Inventory (4,920) Prepaid insurance (1,850) Accounts payable (5,860) Income taxes payable 1,850 Dividends payable 1,300 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use th cash payments, decreases in cash, or any negative adjustments Statement of Cash Flows (partial) For the year ended Dec. 31, -- Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minussion to indicate cash outflows cash payments, decreases in cash, or any negative adjustments Statement of Cash Flows (partial) For the year ended Dec. 31. Cash flows from operating activities: Adjustments to reconcle net income to net cash flow from operating activities: Changes in current operating assets and tables: Net cash flow from operating activities b. Why is net cash flows from operating activities different than net income? of accounting, whereas net income is computed using Cash flows from operating activities is based on