Cash Flows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was $148,400. Depreciation recorded on store equipment for the year amounted to $24,500. 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 $57,730 $53,110 Accounts receivable (net) 41,390 39,250 Merchandise Inventory 56,520 59,750 Prepaid expenses 6,350 5,050 Accounts payable (merchandise creditors) 54,090 50,240 Wages payable 29,560 32,820 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: 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: DILI I 0 Net cash flow from operating activities of accounting. For example revenues are b. Cash flows from operating activities differs from net income because it does not use the recorded on the income statement when