Cash Flows from $($Used for$)$ Operating Activities

The net income reported on the income statement for the current year was $$144,800.$ Depreciation recorded on store equipment for the year amounted to $$23,900.$ 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

Cash $$56,910$ $$51,790$

Accounts receivable $($net$)40,80038,270$

Merchandise inventory $55,71058,260$

Prepaid expenses $6,2604,920$

Accounts payable $($merchandise creditors$)53,32048,990$

Wages payable $29,14032,010$

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 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 $-$

Net cash flow from operating activities $fill in the blank $7$d$8$ba$3$fe$8006$fc$2\_15$

Question Content Area

b$.$ Cash flows from operating activities differ from net income because it does not use the

of accounting. For example revenues are recorded on the income statement when

$.$