Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $93,700. Depreciation recorded on store equipment for the year amounted to $31,200. 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	$24,100		$19,700
Accounts receivable (net)	65,000		56,000
Inventories	47,200		50,000
Prepaid expenses	3,250		8,000
Accounts payable (merchandise creditors)	23,400		17,200
Wages payable	5,300		6,400

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
Decrease in prepaid expenses
Increase in accounts payable
Decrease in wages payable
Net cash flow from operating activities