Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $131,200. Depreciation recorded on store equipment for the year amounted to $21,600. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year $52,220 37,440 51,120 5,740 48,930 26,740 Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Wages payable 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. $48,040 35,500 54,050 4,560 45,450 29,690 Statement of Cash Flows (partial) Cash flows from operating activities: Net income 131,200 V Adjustments to reconcile net income to net cash flow from operating activities: DepreciationY 21,600 Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventories Increase in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flow from operating activities