Cash Flows from Operating ActivitiesIndirect Method The net income reported on the income statement for the current year was $203,400. Depreciation recorded on equipment and a building amounted to $60,800 for the year. 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 $53,490 $56,160 Accounts receivable (net) 67,830 69,300 Inventories 133,730 119,400 Prepaid expenses 7,440 7,920 Accounts payable (merchandise creditors) 59,750 62,670 Salaries payable 8,610 7,810

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End of Year

Cash $53,490

Accounts receivable (net) 67,830

Inventories 133,730

Prepaid expenses 7,440

Accounts payable (merchandise creditors) 59,750

Salaries payable 8,610

Beginning of Year

Cash $56,160

Accounts receivable (net) 69,300

Inventories 119,400

Prepaid expenses 7,920

Accounts payable (merchandise creditors) 62,670

Salaries payable 7,810

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 and for any adjustments, if required.