Under the indirect method for preparing the statement of cash flows (the most common method), the changes in the current asset and current liability accounts are reported in the operating activities section of the statement---after net income. In other words, in the month of publication you will report some revenue from the reduction of your liabiity account deferred revenues. The reduction in your liability account will be reported as a reduction in the operating activities section. The combination of the increase in net income and the subtraction for the decrease in the current liability will result in no cash change during the month of publication.

The prepaid expenses will be similar. The net income is reduced by the amount of prepaid expenses being reported as an expense in the month of publication. However, the reduction of the current asset, Prepaid Expenses, will be shown as a subtraction in the operating activities section of the statement of cash flows.

This will be the same for each of the following 11 months.