Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $122,400. Depreciation recorded on store equipment for the year amounted to $20,200. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year 49,570 35,540 48,530 Beginning of Year Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable $45,600 3,700 51,300 4,330 43,140 28,180 5,450 46,450 25,380 aPrepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outrlows, 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 incorle to net cash fow from operating actvities Changes in current operating assets and liabilities: KP Check My Work 2 more Check My Work uses remaining Show Me How Accounts recelvable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable 5,540 48,530 S,450 46,450 25,380 33,700 1,300 4,330 43,140 28,180 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: Changes in current operating assets and liabilities Net cash flow from operating activites w of accounting. For example revenues are recorded on the b. Cash flows from operating activi income statement when ties differs from net income because it does not use the