Statement of Cash Flows (partial) Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on disposal of equipment Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in accounts payable Increase in prepaid insurance Net cash flow from operating activities 001 IIIII b. Why is net cash flowsom operating activities different than net income? Cash flows from operating activities is based on accrual basis of accounting, whereas net income is computed using accrual basis of accounting Previous Next Chad My Wodmor Check My Work uses remaining