Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $152,300. Depreciation recorded on store equipment for the year amounted to $25,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning Year Cash $62,140 $57,170 Accounts receivable (net) 44.550 42,250 Merchandise inventory 60.840 64,320 Prepaid expenses 6,840 5,430 Accounts payable (merchandise creditors) 58.230 54,080 Wages payable 31.820 35.330 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) Cach flows from operating activities Adiustments to reconcile net income to net cash flow from aperating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when