Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $248,800. Depreciation recorded on equipment and a building amounted to $74,400 for the year. 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 $67,920 $71,320 Accounts receivable (net) 86,120 88,010 Inventories 169,800 151,630 Prepaid expenses 9,440 10,060 Accounts payable (merchandise creditors) 75,870 79,590 Salaries payable 10,940 9,910