Instructions The changes in the current asset and liability accounts for the year are as follows: Depreciation expense Gain on disposal of equipment Net income $65,140 29,350 408,700 The changes in the current asset and liability accounts for the year are as follows Increase (Decrease) $8,540 (4,200) Prepaid insurance Accounts payable Income taxes payable Dividends payable (6,220) 1,620 2,270 Required: A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. B. Briefly explain why net cash flows from operating activities is different from net income Amount Descriptions Amount Descriptions Amortization of intangible assets Cash paid for dividends Decrease in accounts payable Decrease in accounts receivable Decrease in dividends payable Decrease in income taxes payable Decrease in inventory Decrease in prepaid insurance Depreciation expense Gain on disposal of equipment Increase in accounts payable Increase in accounts receivable Increase in dividends payable Increase in income taxes payable Increase in inventory Increase in prepaid insurance Loss on disposal of equipment Net cash flow from operating activities Net cash flow used for operating activities Net income Net loss Statement of Cash Flows-Operating Activities A Prepare the Cash Flows fron Operating Activities section of the staternont of cashRows using the indirect method Refer to the Amount Descriptions list provided for the exact warding of the answer choices for text entries Use the minus sign to indicate cash oulows, cash payments, decreases in cash and for any adjustments, if required. Statement of Cash Flows (partial) 1Cash flows from operating activities Adjustments to reconcle net income to net cash flow from operating activities Changes in current operating assets and liabilities 10 Final Question B. Brieny explain why net cash nows from operating activities is different from net income. Cash flows trom op erating activities difters from net income because it does not use the of accounting. For example, revenues are recorded on the income statement when