Cash Flows from (Used for) Operating Activities The income statement disclosed the following items for the year: Depreciation expense $34,400 Gain on disposal of equipment 20,060 Net income 248,100 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $5,360 (3,050) Inventory Prepaid insurance (1,140) Accounts payable (3,630) Income taxes payable 1,140 Dividends payable 800 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 outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cob flour found Cash flows from (used for) operating activities: Net income $ 248,100 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation expense 34,400 Gain on disposal of equipment Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory 3,050 Decrease in prepaid insurance 1,140 Decrease in accounts payable Increase in income taxes payable 1,140 Net cash flows from operating activities