Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $133,200. Depreciation recorded on store equipment for the year amounted to $22,000. 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	$53,410		$49,140
Accounts receivable (net)	38,290		36,310
Inventories	52,290		55,280
Prepaid expenses	5,880		4,670
Accounts payable (merchandise creditors)	50,050		46,490
Wages payable	27,350		30,370

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.

Cash flows from operating activities:
	$fill in the blank de0144000030fac_2
Adjustments to reconcile net income to net cash flow from operating activities:
	fill in the blank de0144000030fac_4
Changes in current operating assets and liabilities:
	fill in the blank de0144000030fac_6
	fill in the blank de0144000030fac_8
	fill in the blank de0144000030fac_10
	fill in the blank de0144000030fac_12
	fill in the blank de0144000030fac_14
Net cash flow from operating activities		$fill in the blank de0144000030fac_15

b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .

Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $133,200. Depreciation recorded on store equipment for the year amounted to $22,000. Balances o 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 $53,410 $49,140 Accounts receivable (net) 38,290 36,310 Inventories 52,290 55,280 Prepaid expenses 5,880 4,670 Accounts payable (merchandise creditors) 50,050 46,490 Wages payable 27,350 30,370 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. 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: I llll Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when