Exercise 16-3 Calculating cash flows from operating activities (indirect method) QL05 CHECK FIGURE: 1. Net cash inflow from operating activities = $328,200 The account balances for the non-cash current assets and current liabilities of Kid-game Software Inc. are as follows: December 31 2020 2019 Accounts receivable.. $127,000 $104,900 Inventory.. 90,300 119,100 Prepaid expenses. 53,600 48,200 Totals.. $270,900 $272,200 Accounts payable. $ 85,000 $ 65,200 Salaries payable.. 25,500 36,900 Interest payable.. 48,200 39,700 Totals.. $158,700 $141,800 During 2020, Kid-game Software Inc. reported depreciation expense of $57,000. All purchases and sales are on account. Profit for 2020 was $253,000. Required 1. Prepare the operating activities section of the statement of cash flows using the indirect method. 2. Explain why cash flows from operating activities are different from profit