Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $136,100. Depreciation recorded on store equipment for the year amounted to $22,500. 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	$54,300		$49,960
Accounts receivable (net)	38,930		36,920
Inventories	53,160		56,210
Prepaid expenses	5,970		4,750
Accounts payable (merchandise creditors)	50,880		47,260
Wages payable	27,800		30,880

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:
Depreciation	$fill in the blank a27c7a04903004d_2
Adjustments to reconcile net income to net cash flow from operating activities:
	fill in the blank a27c7a04903004d_4
Changes in current operating assets and liabilities:
	fill in the blank a27c7a04903004d_6
	fill in the blank a27c7a04903004d_8
	fill in the blank a27c7a04903004d_10
	fill in the blank a27c7a04903004d_12
	fill in the blank a27c7a04903004d_14
Net cash flow from operating activities		$fill in the blank a27c7a04903004d_15

b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .