Calculator Cash Flows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was $147,00 Depreciation recorded on store ment for the year amounted to $24,400. 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 $54,070 Accounts receivable (net) 39,950 Inventories 60,830 $59,420 12,600 58,170 6,540 55,680 30,420 Prepaid expenses 5,140 51,150 Accounts payable (merchandise creditors) Wages payable 33,420 a. Prepare the cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments Statement of Cash Flows (partial Cash flows from operating activities Adjustments to reconcile net income to net cash flow from operating activities Changes in current operating assets and liabilities O . n ur La p eldung aLLives section of the statement on musing the area U indicate cash outflows, cash payments, decreases in cash, or any negative ad Statement of Cash Flows partial) Cash flows from operating activities Adjustments to reconcile net income one cash flow from operating activities Changes in current operating assets and liabilities: Net cash fow from operating activities of accounting. For example b. Cash flows from operating activities differs from net income because it does not use the revenues are recorded on the income statement when Previous Next >