Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $153,600. Depreciation recorded on store equipment for the year amounted to $25 300 Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Inventories End of Year Beginning of Year $62,820 $57,790 45,040 42.710 61,500 65,010 6,910 5,490 58,860 54,670 32,160 35,710 Prepaid expenses Accounts payable (merchandise creditors) Wages payable a. Prepare the Cash nows from operating activities section of the statement of cash nows, 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 reconcile net income to net cash flow from operating activities: Changes in Current operating assets and liabilities: Net cash flow from operating activities es not use the y of accounting. For example revenues are recorded on. . Cashows from operating activities differs from net income becaus the income statement when