Chapter Statement of Flows Ex 16-5 Cash flows from operating activities-indirect method The net income reported on the income statement was $400,000, Depre tion recorded for the current year on store equipmen for the year amounted to $16,000. Balances of the cur rent asset and current liability accounts at the beginning and end of the year are as sonows. Beginning of Year Cash 538,400 541,600 Accounts receiv 44,000 Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) 24,000 Wages payable a. Prepare the Cash Flows from operating Activities section of the statement of cash flows, using the indirect method. different than P. Briefly explain why net cash flow from operating activities is net income. OBJ 1,2