Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $288,300. Depreciation recorded on equipment and a building amounted to $86,200 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 $73,520 $77,930 Accounts receivable (net) 93,220 96,170 Inventories 183,800 165,680 Prepaid expenses 10,220 10,990 Accounts payable (merchandise creditors) 82,120 86,970 Salaries payable 11,840 10,830 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) 86,200 X 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: Decrease in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Increase in salaries payable Net cash flow from operating activities