LO1,2,5 PI1-51. Reconciling and Computing Operating Cash Flows from Net Income Petroni Company reports the following selected results for its current calendar yea MBC $130,000 28,000 10,000 6,000 3,000 Wages payable decrease..4,000 Accounts receivable increase Accounts payable increase Prepaid expenses decrease Required a. Prepare the operating section only of Petroni Company's statement of cash flows for b. Does the positive sign on depreciation expense indicate the company is generating cash by reco rd- ing depreciation? Explain. c. Explain why the increase in accounts receivable is a use of cash in the statement o d. Explain why the decreas f cash flows. e in prepaid expense is a source of cash in the statement of cash flows