Cash flows from operating activities-indirect method Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Instructions The net income reported on the income statement for the current year was $323,000. Depreciation recorded on equipment and a building amounted to $90,060 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 $89,700 111,690 $95,670 119,220 Accounts receivable (net) Inventories 226,850 194,630 Prepaid expenses 12,730 14,220 Accounts payable (merchandise creditors) 103,120 96,000 15,630 Salaries payable 13,010 Required: Instructions Amount Descriptions Statement of Cash Flows-Operating Activities Instructions Statement of Cash Flows-Operating Activities A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. Statement of Cash Flows (partial) 1 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Final Question Statement of Cash Flows-Operating Activities Final Question scriptions list in cash and for prd B. If the direct method had been used, would the net cash flow from operating activities have been the same? Instructions Statement of Cash Flows-Operating Activities Final Question Amount Descriptions Amount Descriptions Amortization of intangible assets Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Decrease in prepaid expenses Decrease in salaries payable Depreciation Increase in accounts payable Increase in accounts receivable Increase in inventories Increase in prepaid expenses Increase in salaries payable Net cash flow from operating activities Net cash flow used for operating activities Net income Net loss