Cash flows from $($used for$)$ operating activities$$indirect method

The net income reported on the income statement for the current year was $$131,000.$ Depreciation recorded on store equipment for the year amounted to $$21,600.$ 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 $$53,060$ $$48,280$

Accounts receivable $($net$)38,04035,680$

Inventories $51,95054,320$

Prepaid expenses $5,8404,590$

Accounts payable $($merchandise creditors$)49,72045,670$

Wages payable $27,17029,840$

Question Content Area

a$.$ Prepare the $$Cash flows from $($used for$)$ operating activities$$ 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.

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Statement of Cash Flows $($partial$)$

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Cash flows from $($used for$)$ operating activities:

Net income

$Net income

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities:

Depreciation

Depreciation

Changes in current operating assets and liabilities:

Increase in accounts receivable

Increase in accounts receivable

Decrease in inventories

Decrease in inventories

Increase in prepaid expenses

Increase in prepaid expenses

Increase in accounts payable

Increase in accounts payable

Decrease in wages payable

Decrease in wages payable

Net cash flows from operating activities

$Net cash flows from operating activities