000 eBook Show Me How Calculator Print Item Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $73,600. Deprediation recorded on store equipment for the year amounted to $27.400. 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 $23,500 $18,700 Accounts receivable (net) 56,000 48,000 Inventory 35,500 40,000 Prepaid expenses 4,750 7,000 Accounts payable (merchandise creditors) 21,800 16,800 Wages payable 4,900 5,800 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash flow from operating activities: changes in current operating assets and liabilities Wages payable 4,900 5,800 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the out flows, cash payments, decreases in cash, or any negative adjustments. minus sign to indicate cash Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash flow from operating activities Changes in current operating assets and liabilities Net cash flow from operating activities of accounting. For example revenues are b. Cash flows from operating activities differs from net income because it does not use the reorded on the income statement when