Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $123,700. Depreciation recorded on store equipment for the year amounted to $20,400. 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 $48,120 $43,790 34,500 32,360 47,110 49,260 5,290 4,160 45,090 41,430 24,640 27,060 Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (mechandise creditors) Wages payable 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:

Cach Flows from Operating Activies-Endirect Method The net income reported on the income statement for the current year was $123,700. Depreciation reconded on itare equipment for the year amourited to $20,40 Baiances of the current asset and curient llability accounts at the beginning and end of the year are is follows: a. Prepire the "Cash flowi from operating activities" sectoon of the statemacrit of cash fown, using the indired method. Use the minus sign to indicate cash outhows, cash payments, decreases in cash, or any negative adjustments. Cith Biaws from Operating Nitities-lhdirect Method The net income reported on the incorme statement for the current year was 5123,700. Depreeistion recanded on store equibment for the year amounted to 520,400 Balances of the curreat asset and current liabitity accounts at the beginning and end of the year are as follows: outhoms, cesh porments, decreaser in cashy or amy negattvin agustments. Statement of Cash Fows (Dartial) b. Cashi fiows from operating actuvidies differs from oet incoine bocause it does not wse the of accotintiog For example revenues ate recorded on the income statement wher