Cath Flows from Operating Actuvities-Indirect Method The net income reported on the income statement for the current year was $149,700, Depreciation. recorded on store equipment for the year amounted to $24,700. Balances of the current asset and current llability accounts at the beginning and end of the year are as follows: 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 outfiows, casi payments, decreases in cash, or any negative adjustments. Festhack v Oreck Mr wos Compoute the increases and decreases in the current assethiability accounts over the period. Determine what affect these changes would have on cash. b. Cash flows from operating octivities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when: Feelbes v Deak Uy wisk Review the definitian of acerual accounting. Haw does this differ with the contept of cash flow payments and receipts? Frethena