=+EX 16-4 Cash flows from operating activities—

indirect method obj. 2 Chapter 16 Statement of Cash Flows 743 The net income reported on the income statement for the current year was $132,000.

Depreciation recorded on store equipment for the year amounted to $21,800. 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 $52,300 $48,200 Accounts receivable (net) 37,500 35,600 Merchandise inventory 51,200 54,220 Prepaid expenses 6,000 4,600 Accounts payable (merchandise creditors) 49,000 45,600 Wages payable 26,800 29,800