Cash Flows from Operating Activities-indirect Method The net income reported on the income statement for the current year was $120,300. Depreciation recorded on store equipment for the year amounted to 18.00 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 $47,640 Accounts receivable (net) 34,160 Inventories 46,640 Prepaid expenses 5,240 Accounts payable (merchandise creditors) 44,640 Wages payable 24,390 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the Indirect method. Use the minu payments, decreases in cash, or any negative adjustments t o indicate to Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash row from operating active 100 Changes in current operating assets and liabilities: Accounts payable (merchandise creditors) Wages payable 41,460 44,640 24,390 27,090 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 out flows, cash payments, decreases in cash, or any negative adjustments ari Statement of Cashw Cash Rows from operating activities: Adjustments to reconcie net income to not cash flow from operating activities Changes in current operating assets and liabilities: Net cash flow from operating activities of accounting. For example revenues are recorded on the b. Cash flows from operating activities differs from net income because it does not use the income statement when