Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $139,600. Depreciation recorded on store equipment for the year amounted to $23,000. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows End of Year $53,750 38,540 52,620 5,910 50,360 27,520 Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Wages payable 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 $49,450 36,540 55,630 4,700 46,780 30,560 Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash flow from operating activities hanges in current operating assets and liabilities