Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $307,700. Depreciation recorded on equipment and a building amounted to $92,000 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 Cash Accounts receivable (net) Inventories $84,310 $89,370 106,910 110,280 210,780 190,000 Prepaid expenses 11,720 12,600 Accounts payable (merchandise creditors) Salaries payable 94,170 13,570 99,740 12,420 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 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 b. If the direct method had been used, would the net cash flow from operating activities have been the same?