Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense $57,800 Gain on disposal of equipment Net income 33,710 363,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $9,000 Inventory (5,120) Prepaid insurance (1,920) Accounts payable (6,100) Income taxes payable 1,920 Dividends payable 1,350 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 (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 Feedback