Cash Flows from Operating Activities --Indirect Method The net Income reported on the income statement for the current year was $140,300. Deprecation recorded on store equipment for the year amounted to $23,100. 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 $53,590 $49,300 Accounts receivable (net) 38,420 36,430 Inventories 52,460 55,460 Prepaid expenses 5,890 4,680 Accounts payable (merchandise creditors) 50,210 46,640 Wages payable 27,440 30,470 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 abilities: Net cash flow from operating activities of accounting. For example b. Cash flows from operating activities differs from net income because it does not use the revenues are recorded on the income statement when