Cash Flows from Operating ActivitiesIndirect Method The income statement disclosed the following items for the year: $48,200 Depreciation expense Gain on disposal of equipment 28,120 Net income 419,600 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable Inventory Prepaid insurance $7,510 (4,270) (1,600) (5,090) 1,600 1,120 Accounts payable Income taxes payable Dividends payable a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of equipment Changes in current operating assets and liabilities: Increase in accounts receivable O II lll Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in income taxes payable Net cash flow from operating activities