Cash Flows from Operating Activities-Indirect Method The income statement disclosed the following items for the year: Depreciation expense Gain on disposal of equipment Net income $48,200 28,130 356,700 The changes in the current asset and liability accounts for the year are as follows: Accounts receivable Inventory Prepaid insurance Increase (Decrease) $7,510 (4,280) (1,000) (5,090) Accounts payable Income taxes payable Dividends payable 1,600 1,130 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: