Cash Flows from Operating Activities -- Indirect Method The net income reported on the income statement for the current year was $115,300 Depreciation recorded on store equipment for the year amounted to $19,000. 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 $44,850 $40,810 Accounts receivable (net) 32,160 30,160 Inventories 43,910 45,910 Prepaid expenses 4,930 3,880 Accounts payable (merchandise creditors) 42,020 38,610 Wages payable 22,900 25,220 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 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: Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the For example revenues are recorded on the income statement when of accounting