The changes in the current asset and liability accounts for the year are as follows: Depreciation...

The changes in the current asset and liability accounts for the year are as follows:

Depreciation expense

$48,500

Gain on disposal of equipment

26,900

Net income

577,400

The changes in the current asset and liability accounts for the year are as follows:

Increase (Decrease)

Accounts receivable

$8,190

Inventory

(4,280)

Prepaid insurance

(2,020)

Accounts payable

(7,000)

Income taxes payable

1,390

Dividends payable

2,480

Required:

Prepare the Cash Flows from Operating Activities section of the statement of cash flows <javascript:void(0)>, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

Briefly explain why net cash flows from operating activities is different from net income.

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Expert Solution

ekkarill92 answered 1 year ago

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