Cash Fiows from Operating Activkies-liairect Method The income statemerit disclosed the following items for the year: The changes in the current asset and liability accounts for the year are as follows: decreases in cash, or any negstrve adjustmento. decreases in cash, of ony negative adjustments. Statement of Cash Hlows (partial) b. Why is net cash flows from operabing activities different than net income? Cath flows frem operating actimkies is based on El accounting, whereas ret income is conpued ining uf accounting..