eBook Show Me How Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $128,800. Depreciation recorded on store equipment for the year amounted to $21,300. 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 Accounts receivable (net) Inventories $51,520 $47,400 36,940 35,030 50,440 $3,330 Prepaid expenses 5,670 4,500 Accounts payable (merchandise creditors) 48,270 44,840 Wages payable 26,380 29,290 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: Decrease in prepaid expenses come to net cash flow from operating activities: Depreciation Increase in inventories Net income assets and liabilities: ENG 12:46 PM Assignment/takeAssignmentMain.do?invoker-8takeAssignmentSessionLocator=&inprogress=false eBook Show Me How Accounts payable (merchandise creditors) 48,270 Wages payable 26,380 44,840 29,290 > 1 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: ChDecrease in accounts payable and liabilities: Decrease in accounts receivable Depreciation Increase in wages payable Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the example revenues are recorded on the income statement when of accounting. For hn ENG US 40 12:46 PM 7/28/2022 Accounts payadie (merchandise creditorsy 10/270 Wages payable 26,380 www 29,290 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: 0000 00 Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the l example revenues are recorded on the income statement when hp of accounting. For accrual basis cash basis KB ENG US 12:47 PM 7/28/2022 Changes in current operating assets and liabilities: Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the example revenues are recorded on the income statement when H no they are earned cash is received