'ou can use this worksheet tab to explore why changes in various balance sheet accounts have what may be somewhat puzzling impact the cash flow statement. Eor example why does buying something on credit (accounts payable) appear as a cash inflow, or extending credit (accounts receivable) appear as a cash outflow. VINCE GILL COMPANY Partial Statement of Cash Flows For The Year Ended December 31, 2020 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Decrease in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accounts payable Decrease in accrued expenses payable Net cash provided by operating activities