Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $117,100. Depreciation recorded on store equipment for the year amounted to $19,300. 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	$45,430		$41,800
Accounts receivable (net)	32,570		30,890
Inventories	44,480		47,030
Prepaid expenses	5,000		3,970
Accounts payable (merchandise creditors)	42,570		39,540
Wages payable	23,260		25,830

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