Only need the decrease in merchandise inventory, so I can calculate the Net cash

Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $129,600. Depreciation recorded on store equipment for the year amounted to $21,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable End of Year $49,380 35,410 48,340 5,430 46,270 25,280 Cash flows from operating activities: Net income Beginning of Year $44,940 33,210 50,560 4,270 42,510 27,770 a. Prepare the Cash Flows from (used for) 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) 129,600 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in merchandise inventory Increase in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flow from operating activities Feedback 21,400 00333 -2,200 -1,160 3,760 -2,490 Check My Work a. Calculate the increases and decreases in the current asset/liability accounts over the period. Determine what affect these changes would have on cash. b. Cash flows from operating activities differ from net income because it does not use the accrual basis they are earned of accounting. For example revenues are recorded on the income statement when