The account balances for the non-cash current assets and current

The account balances for the non-cash current assets and current liabilities of Peartree Software Inc. are as follows:

The account balances for the non-cash current assets and current

During 2014, Peartree reported depreciation expense of $56,000. All purchases and sales are on account. Net income for 2014 was $252,000.

Required
1. Prepare the operating activities section of the statement of cash flows using the indirect method.
2. Explain why cash flows from operating activities are different from netincome.

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