EX 13.5 Cash flows from operating activities-indirect method Obj. 1, 2 h flow from The net income reported on the income statement for the current year was $73,600. Depreciation isn activities, recorded on store equipment for the year amounted to $27,400. Balances of the current asset and 0rent liability accounts at the beginning and end of the year are as follows: 103 850 End of Year Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Wages payable 23,500 56,000 35,500 4,750 21,800 4,900 $18,700 48,000 40,000 7,000 16,800 5,800 SNOW ME HOW A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. BBriefly explain why net cash flow from operating activities is different than net income