Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $149,900. Depreciation recorded on store equipment for the year amounted to $24,700. 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) $61,310 $56,410 43,960 41,690 Inventories 60,020 63,460 Prepaid expenses 6,740 5,360 Accounts payable (merchandise creditors) 57,450 53,360 Wages payable 31,390 34,860 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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: