Solved

Cash flows frorn (used for) Operating Activities The inconte statement disdcsed the following items the Depredation experbe Gain on 'Asposal ot equipment Net income $33,300 225.100 the changes in the current asset and Lability accwnts ror the year as Accounts prepaid insurance Accounts payable Income taxes payable Oividends payable ( Decrease) (2.950) (1.110) 0.520) a. Prepare the Cash flows irorn (used for) Operating Activities section of the statement ot cash now'. using the indirect method. use the minus sign to indicate cash outflows. cash payments, decreases in cash. any negative adjustments. Statement 01 Cash (partial) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and "abilities: Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income? of accounting, whereas net income is computed using Cash flows from operating activities is based on 01 accounting.