Accounts receivable Statement of Financial Position at December 31 Cash Current Year $9,460 1,500 Prior Year $12,560 660 Prepaid expenses 900 130 Equipment 670 Accumulated depreciation e (130) e $12,400 $13,350 wages payable $ 510 $1,900 Short-term note payable. 220 e Contributed capital 4,200 4,200 Retained earnings 7,470 7,250 $12,400 $13,350 Statement of Earnings for Current Year service revenue $50,000 Depreciation expense 130 salaries expense 38,000 other expenses 11,650 Net earnings $ 220 Additional Date: 1. Prepaid expenses relate to rent paid in advance. 2. Other expenses were paid in cash. 3. Purchased equipment for $670 cash at the beginning of the current year and recorded $130 of depreciation expense at the end of the current year 4. At the end of the current year, the company signed a short-term note payable to the bank for $220 Required: Prepare the operating activities section of the statement of cash flows for Computer Service and Repair using the indirect method (Negative answers should be indicated by a minus sign.) Cash Bows brom operating activities-indirect method Nel earnings Add (deduct) to reconcile net eamings to net cash flow provided by operating activities Depreciation expense Increase in accounts receivable Increase in prepaid expenses Decrease in short-term note payable Decrease in wages payable $ 220 Het cash flows used for operating activities S 220