ECTIVE 4 Problem 11-53A Reporting Not Cash Flow from Operating Activities The income statement for Granville Manufacturing Company is presented below. Sales Cost of goods sofd Gross margin Operating expenses $4,199.830 2,787,210 Salarias expense Administrative exponse Bad debt expense Other expenses $881,800 246,100 131,000 51,700 43,900 Net income The following balance sheet changes occurred during the year: Accounts receivable increased by $182,400. Inventory increased by $98,725. Prepaid expenses decreased by $64,100. Accounts payable increased by $43,850. Salaries payable increased by $54,900. Required 1. Prepare the net cash flows from operating activities using the indirect method. 2. CONCEPTUAL CONNECTION What are the causes of the major differences betwee income and net cash flow from operating activities? oblem 11-58A (Appendix 11A) Preparing Net Cash Flows from Operating ivities-Direct Method r to the information for Granville Manufacturing Company in Problem 11-53A. ired: re the cash flows from operating activities section of the statement of rash fiovs