Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $149,300. Depreciation recorded on store equipment for the year amounted to $24,600. 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 $57,180 $52,610 Accounts receivable (net) 41,000 38,880 55,980 Inventories Prepaid expenses Accounts payable (merchandise creditors) Wages payable 59,190 5,000 6,290 49,770 53,580 29,280 32,510 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 149.300 Statement of Cash Flows (partial Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and abilities: Increase in accounts receivable 24.600 Decrease in Inventories + ne lea X 2Assignment/take AssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How Calculator 24,600 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Increase in accounts receivable y Decrease in Inventories Increase in prepald expenses Increase in accounts payable Decrease in wages payable y Net cash flow from operating activities Feedback Check My Work a. Compute the increases and decreases in the current asset/liability accounts over the period. Determine what affect thes cash Learning Objective 1 and Learning Objective 2. b. Cash flows from operating activities differs from net income because it does not use the accrual basis recorded on the income statement when they are earned of accounting. For