Cash flows from Operating Activities. Indirect Method The net income reported on the income statement for the current year was $313,800. Depreciation recorded on equipment and a building amounted to $93,800 for the year, Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $84,730 $89,810 Accounts receivable (net) 107,440 110,830 Inventories 211,830 190,940 Prepaid expenses 11,780 12,660 Accounts payable (merchandise creditors) 94,640 100,230 Salaries payable 13,640 12,480 4. Prepare the Coh Flows from Operating Activities section of the statement of the doming the indirect method. Use the sign to wcate cath outflow cash decreases in cath, or any negative adjustments statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to be cash flow from operating activities Changes in current operating assets and abilities 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 liabilities: Net cash flow from operating activities b. If the direct method had been used, would the net cash flow from operating activities have been the same