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  3. the net income reported on the income statement fo

The net income reported on the income statement for the current year was $318,700. Depreciation...

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Accounting

The net income reported on the income statement for the current year was $318,700. Depreciation recorded on equipment and a building amounted to $93,980 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

End of Year Beginning of Year
Cash $90,370 $95,280
Accounts receivable (net) 111,660 118,570
Inventories 232,780 203,250
Prepaid expenses 12,000 15,310
Accounts payable (merchandise creditors) 96,420 104,940
Salaries payable 15,310 13,420

Required:

A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, 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.
B. If the direct method had been used, would the net cash flow from operating activities have been the same?

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