290,000 eBook Show Me How Printes Net income Adjustments to reconcile net income to net cash Mows from (used for operating activities Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Increase in salaries payable Net cash flows from operating activities Check My W a. Calculate the increases and decreases in the current asteliability accounts over the period. What affect would these changes have on cath? b. Ir the direct method had been used, would the net cash flows from operating activities have been the same? Chat My Won Previous Next Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $290,000. Depreciation recorded on equipment and a building amounted to $150,500 for the year, Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End Beginning of Year of Year Cash $117,600 $135,000 Accounts receivable (net) 132,500 141,100 Inventories 291,900 274,300 Prepaid expenses 5,600 7,100 Accounts payable (merchandise creditors) 143,400 172,400 Salaries payable 11,300 6,300 a. Prepare the Cash Flows from tuned for Operating Activities section of the statement of cash flows, using the Indirect method. Use the minus sign to indicate cash outflows, cath payments, decreases in cash, or any negative adjustments Statement of Cash Flows (partial) 290.000 Cash flows from (used for) operating activities Net Income Adjustments to reconcile net income to net cash flows from (used for) cperating activities Depreciation Changes in current operating assets and liabilities Check My Work Previous Next > All work saved maimainaatu