Cash Flows from Operating Activities--Indirect Method The net income reported on the income statement for the current year was $137,400. Depreciation recorded on store equipment for the year amounted to $22,700. 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 $54,270 $49,390 Accounts receivable (net) 38,910 36,500 Inventories 53,130 55,560 Prepaid expenses 5,970 4,690 Accounts payable (merchandise creditors) 50,850 46,720 Wages payable 27,790 30,520 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: Previous Next