Cash Flows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was $143,500. Depreciation recorded on store equipment for the year amounted to $23,700 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 Accounts receivable (net) Merchandise inventory $56,830 40,750 55,640 6.250 53,250 29,100 $51,720 38,220 58,190 4,910 48,930 31,960 Prepaid expenses Accounts payable (merchandise creditors) Wages payable using the Indirect method. Use the mind onto ndicate cash outflows a. Prepare the Cash Flows from Operating Activities section of the statement of cash cash payments, decreases in cash, or any negative adjustments Statement of Cash Flows (partial) Cash flows from operating activities: Adratments to reconcle net income to not cash flow from operating activeses: Changes in current operating assets and tables Check My Work All work saved Sm igment for Grading Statement of Cash Flows (partial) Cash flows from or in acties Adjustments to reconcle net income to net cash flow from operating activities Changes in current operating sets and abilities: m Post Cathrow from coating activities 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