OBJ. 1, 2 EX 16-6 Cash flows from operating activities-indirect method The net income reported on the income statement for the current year was $185,000. Depreciation recorded on equipment and a building amounted to $96,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: / Net cash flow rom operating ctivities, $260,850 Beginning of Year 86,150 90,000 175,000 4,500 110,000 4,000 Show Me How Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable End of Year 75,000 84,550 186,200 3,600 91,500 7,200 a. Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method. b.If the direct method had been used, would the net cash flow from operating activities have been the same? Explain