VEX 16-6 Cash flows from (used for) operating activities OBJ. 1, 2 ash flows The net income reported on the income statement for the current year was $290,000 ating Depreciation recorded on equipment and a building amounted to $150,500 for the yess $409,000 Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: OW End of Year Beginning of Year HOW Cash $117,600 $135,000 Accounts receivable (net) 132,500 141,100 Inventories 291,900 274,300 Prepaid expenses 5,600 7,100 Accounts payable (merchandise creditors) 143,400 172,400 Salaries payable 11,300 6,300 a. Prepare the Cash Flows from (used for) 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 flows from operating activities have been the same? Explain. EX 16-7 Cash flows from (used for) operating activities OBJ. 1, 2