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

The net income reported on the income statement for the current year was $$154,900.$ Depreciation recorded on store equipment for the year amounted to $$25,600.$ Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

Line Item Description End of Year Beginning of Year

Cash $$61,500$ $$55,970$

Accounts receivable $($net$)44,10041,360$

Inventories $60,21062,970$

Prepaid expenses $6,7705,320$

Accounts payable $($merchandise creditors$)57,63052,950$

Wages payable $31,49034,590$

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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Line Item Description Amount Amount

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

$$-$ Select $-$

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

$-$ Select $-$

Changes in current operating assets and liabilities:

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

Question Content Area

b$.$ Cash flows from operating activities differs from net income because it does not use the fill in the blank $1$ of $2$

of accounting. For example revenues are recorded on the income statement when fill in the blank $2$ of $2$