Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $117,800. Depreciation recorded on store equipment for the year amounted to $19,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Wages payable End of Year Beginning of Year $48,180 $44,330 34,550 32,760 47,170 49,870 5,300 4,210 45,140 41,940 24,670 27,400 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: Increase in wages payable Changes in current operating assets and liabilities: Increase in accounts receivable Net cash flow from operating activities of accounting. For example b. Cash flows from operating activities differs from net income because it does not use the revenues are recorded on the income statement when