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 The net income reported on the income statement for the current year was $205,800

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 The net income reported on the income statement for the current year was $205,800. Depreciation recorded on equipment and a building amounted to $61,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End Beginning of Year of Year Cash $55,980 $58,220 Accounts receivable (net) 70,980 71,840 Inventories 139,950 123,780 Prepaid expenses 7,780 8,210 Accounts payable (merchandise creditors) 62,530 64,970 Salaries payable 9,010 8,090 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Statement of Cash Flows (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 liabilities: Net cash flows from operating activities b. If the direct method had been used, would the net cash flow from operating activities have been the same?