Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $216,000. Depreciation recorded on equipment and a building amounted to $64,600 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 $54,000 68,470 135,000 7,510 60,320 8,690 Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable 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. $57,240 70,630 121,690 8,070 63,880 7,960 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: 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