Instructions Operating Cash Flows - Indirect Method Shaded cells have feedback. X The income statement for Piura Merchandising Corporation is as follows: Piura Merchandising Corporation Prepare a schedule that provides the operating cash flows for the year using the indirect method. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Income Statement At December 31, 2015 Piura Merchandising Corporation Score: 83/90 Sales $ 1,500,000 Operating Cash Flows Using the Indirect Method Less: Cost of goods sold 1 Cash flows from operating activities: Beginning inventory $ 415,000 2 Net income $295,000.00 Purchases 780,000 3 Add (deduct) adjusting items: Decrease in accounts payable Ending inventory (285,000) (18,000.00) (130,000.00 (910,000) 5 Decrease in inventory Less: Depreciation expense (64,000) 6 Depreciation expense 64.000.00 Less: Amortization of patent (18,500) 7 Increase in accounts receivable (18,000.00) (71,000) 8 Less: Wages expense Increase in prepaid insurance (22,000.00) 9 Increase in wages payable 14,000.00 Less: Insurance expense (38,500) 10 Amortization of patent 18,500.00 Income before taxes $ 398,000 11 Net cash from operating activities $203,500.00 Less: Income taxes (all current) (103,000) Net income $ 295,000 Points 16.6 / 18 Other information is as follows: MAKE CORRECTIONS FOR CELLS 5 & 11 A. Accounts payable decreased by $18,000 during the year. THANK YOU. B. Accounts receivable increased by $18,000 C. All wages were paid at the beginning of the year, at the end of the year, wages payable had a balance of $14,000. D. Prepaid insurance increased by $22,000 during the year. Prepare a schedule that provides the operating cash flows for the year using the indirect method