Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $296,300. Depreciation recorded on equipment and a building amounted to $88,600 for the year. 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	$76,150		$79,960
Accounts receivable (net)	96,560		98,670
Inventories	190,380		169,990
Prepaid expenses	10,580		11,270
Accounts payable (merchandise creditors)	85,060		89,240
Salaries payable	12,260		11,110

Question Content Area

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.