Cash Hows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was $140,700. Depreciation recorded on store equipment for the year amounted to $23,200. 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 $57,550 $52,370 Accounts receivable (net) 41,260 38,700 Inventories 56,340 58,920 Prepaid expenses 6,330 4,980 Accounts payable (merchandise creditors) 53,920 49,540 Wages payable 29,470 32,360 a. Prepare the "Cash flows from 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. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 0 01111 . Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the revenues are recorded on the income statement when of accounting. For example