Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $146,900. Depreciation recorded on store equipment for the year amounted to $24,200. 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 $59,050 $53,740 Accounts receivable (net) 42,340 39,710 Merchandise inventory 57,810 60,460 Prepaid expenses 6,500 5,110 Accounts payable (merchandise creditors) 55,330 50,840 Wages payable 30,230 33,210 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: ml I Net cash flow from operating activities of accounting. For b. Cash flows from operating activities differs from net income because it does not use the example revenues are recorded on the income statement when