Cash Flows from Operating Activities-Indirect Method Staley Inc. reported the following data: $299,100 Net income Depreciation expense Loss on disposal of equipment Increase in accounts receivable Increase in accounts payable 68,500 23,900 16,700 11,900 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 outflows, cash payments, decreases in cash, or any negative adjustments. Staley Inc. Statement of Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense es: Loss on disposal of equipment Changes in current operating assets and liabili Increase in accounts receivable Increase in accounts payable Net cash flow from operating activities Cash Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $137,800. Depreciation recorded on store equipment for the year amounted to $22,700. 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 $52,640 $48,430 Accounts receivable (net) 37,740 35,790 Merchandise inventory 51,530 54,480 Prepaid expenses 5,790 4,600 Accounts payable (merchandise creditors) 49,320 45,810 Wages payable 26,950 29,930 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 outflows, 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: 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