Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the outrent year was $120,300, Depreciation recorded on store equipment for the year amounted to $19,800. Balances of the current asset and current habity accounts at the begining and end of the year are as folows: End of Year Beginning of Year Cash $46,560 $42,840 Accounts receivable (net) 33,3804 31,660 Inventories 45,580 41,200 Prepaid expenses 5,120 4,070 Accounts payable (merchandise creditors) 43,630 Wages payable 23,840 40,530 26,480 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the direct method. Use the minus son to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments Statement of Cash Flows i Flows (partial) 000 Cash Bows from operating activities Net income Adjustments to reconcile net income to net cash flow from operating activites Depredation Changes in current operating assets and labities: Increase in accounts receivable