Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $129,800. Depreclation recorded on store equipment for the year amounted to $21,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: chanaes 4,150 End of Year Beginning of Year $51,920 37,230 S0,830 5,710 48,650 26,580 $47,770 35,300 53,740 4,540 45,190 29,520 Accounts recelvable (net) dise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable 2910) 400 2940) a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indkate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcike net income to net cash flow from operating activities: Changes in current operating assets and liabilities: recighon ai,400 increos in acut. rec. increase in prepard exp 34 00 -anHo Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the Occvual recorded on the income statement when of accounting. For example revenues are they ave eamed