The income statement disclosed the following items for the current year: Balances of the current assets and current liabilities accounts changed between December 31, last year, and December 31, this year, as follows: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Current Liabilities

Short-term financial obligations that are due within one year or within the entity's operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle if longer.

Income Statement

An accounting report that displays the income, costs, and overall profit of a business for a certain period.