Cash Flows from Operating Activities -- Indirect Method The net income reported on the income statement for the current year was $294,900. Depreciation recorded on equipment and a building amounted to $88,200 for the year. 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) $84,650 104,460 179.970 Inventories $81,390 103,200 203480 11,310 90,910 13,100 11,940 Prepaid expenses Accounts payable (merchandise creditors) Salaries payable 94,470 11,770 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 reconcione con tonet cash flow from o rating activities: Changes in current operating assets and abilities: 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 outlows, cash payments, decreases in cash, or any negative adjustments Statement of Cash Flows (partial) Cash Flows from comeng activeres: Ad ents to recordent come to net cash flow from operating activities Changes in cur ing a nd Hutch How to get b. If there had been used the net cash for c es have been the