Cash Flows from Operating ActivitiesIndirect Method

The income statement disclosed the following items for the year:

Depreciation expense	$51,200
Gain on disposal of equipment	29,870
Net income	446,900

The changes in the current asset and liability accounts for the year are as follows:

	Increase (Decrease)
Accounts receivable	$7,980
Inventory	(4,540)
Prepaid insurance	(1,700)
Accounts payable	(5,410)
Income taxes payable	1,700
Dividends payable	1,190

Question Content Area

1. What is the Net cash flow from operating activities?

Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: The changes in the current asset and liability accounts for the year are as follows: a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. 2 more Check My Work uses remaining. a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows ( Dartial) 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 ofaccounting.