Cash Flows from operating Activities-Indirect Method The net income reported on the income statement for the current year was $126,600. Depreciation recorded on store equipment for the year amounted to $20,900. 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 $48,990 $44,580 Cash 35,130 32,940 Accounts receivable (net) 47,960 50,150 Merchandise inventory 5,390 Prepaid expenses 4,240 42,170 45,900 Accounts payable (merchandise creditors) 25,080 Wages payable 27,550