Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $308,900. Depreciation recorded on equipment and a building amounted to $92,400 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 S96.000 Cash Accounts receivable (net) Inventories $83,090 105,360 108,690 207,730 197,200 Prepaid expenses 11,550 17,420 Accounts payable (merchandise creditors) Salaries payable 92,810 13,380 98,300 17,740 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 outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from opereng ectivities: Net income 305,900 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 92,400 Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in Inventories Decrease in prepaid expenses 3,330 -20,470 Decrease in accounts payable -5,490 Increase in salaries payable Net cash flow from operating activities 1,1-40 b. If the direct method had been used, would the net cash flow from operating activities have been the same? Yes Fraduack My Work b. Recall the process used to calculate cash flow from operating activities for the indirect and direct methods. Would these methods yield the same