Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense $44,800 Gain on disposal of equipment 26,130 Net income 259,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $6,980 Inventory (3,970) Prepaid insurance (1,490) Accounts payable (4,730) Income taxes payable 1,490 Dividends payable 1,050 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indir decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Dividends payable 1.050 a. Prepare the Cash Flows from used for Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outhows, cash payments decreases in cau, or any negative adjustments Statement of Cash Flowe (partial) Cash flows from used for operating activities Adjustments to reconcie net income to net cash flows. From (uned for operating activities e changes in current operating nuts and bones ||| Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income Cash flows from operating activities is based on of accounting, whereas net income is computed using of accounting Previous Next Check My Work All work saved Email instructor Save and Exit Submit Assignment for Grading