Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $123,700. Depreciation recorded on store equipment for the year amounted to $20,400. 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 Accounts receivable (net) $47,010 $42,780 33,710 31,610 Inventories 46,020 48.130 Prepaid expenses 5,170 4,060 Accounts payable (merchandise creditors) Wages payable 44,050 24,070 40,470 26,440 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 outflows, cath payments, decreases in cash, or any negative adjustments. 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 liabilities: 1 Increase in accounts receivable 123,700 payable merchandise creditors). Wages payable 44,050 24,070 40,470 26.440 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 outflows, cash payments, decreases in cash, or any negative adjustments. 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 liabilities: Increase in accounts receivable Decrease in inventories Increase in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flow from operating activities Foodback Check My Wun 1231,700