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Cash Flows from (Used for) Operating Activities

The net income reported on the income statement for the current year was $145,100. Depreciation recorded on store equipment for the year amounted to $23,900. 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	$56,730		$51,620
Accounts receivable (net)	40,680		38,150
Merchandise inventory	55,540		58,070
Prepaid expenses	6,240		4,900
Accounts payable (merchandise creditors)	53,160		48,830
Wages payable	29,050		31,900

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.

blank Statement of Cash Flows (partial) blank

Cash flows from operating activities:
CashDecrease in accounts receivableDepreciationIncrease in wages payableNet income	$- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
CashDecrease in accounts payableDecrease in accounts receivableDepreciationIncrease in wages payable	- Select -
Changes in current operating assets and liabilities:
CashDepreciationIncrease in accounts receivableIncrease in inventoriesIncrease in wages payable	- Select -
CashDecrease in accounts receivableDecrease in merchandise inventoryIncrease in inventoriesIncrease in prepaid expenses	- Select -
CashDecrease in accounts receivableIncrease in prepaid expensesIncrease in inventoriesIncrease in wages payable	- Select -
CashDecrease in accounts payableDepreciationIncrease in accounts payableIncrease in wages payable	- Select -
CashDecrease in accounts receivableDecrease in wages payableIncrease in prepaid expensesIncrease in wages payable	- Select -
Net cash flow from operating activities		$fill in the blank 4b2fabf98f8ffd3_15

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b. Cash flows from operating activities differ from net income because it does not use the

accrual basiscash basis

of accounting. For example revenues are recorded on the income statement when

cash is receivedthey are earned

.