Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $118,200. Depreciation recorded on store equipment for the year amounted to $19,500. 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 $47,160 $42.920 Accounts receivable (net) 33,810 31,720 Inventories 48,290 46,170 5,190 44,190 Prepaid expenses Accounts payable (merchandise creditors) Wages payable 4,080 40,600 24,150 26,520