Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $136,000. Depreciation recorded on store equipment for the year amounted to $22,400. 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 $51,680 $47,550 Accounts receivable (net) 37,050 35,140 Inventories 50,590 53,490 Prepaid expenses 5,680 4,520 Accounts payable (merchandise creditors) 48,420 44,980 Wages payable 26,460 29,390 3. 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: 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: Q1 lll. Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the the income statement when of accounting Forecample revenues are recorded on