Cash Flows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was 5137,700 Depreciation recorded on store equipment for the year amounted to $22.700 Balances of the current asset and current ability accounts at the beginning and end of the year are as follow End of Year Beginning of Year Cash $55,080 $50,670 Accounts receivable (net) 39,490 37.450 Inventories 53,920 57,000 Prepaid expenses 6,060 4,810 Accounts payable (merchandise creditors) 51,610 47,930 Wages payable 25,200 31,310 a. Prepare the Cash Flows from Operating Activities section of the statement of cash nows, using the Indirect method. Use the mission to indicate cash out flows. 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 bl)ID Net cash flow from operating activities o of accounting for example revenues are recorded b. Cash flows from operating activities differs from net income because it does not use the on the income statement when