Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $141,200. Depreciation recorded on store equipment for the year amounted to $23,300. 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 $55,630 Cash $50,620 Accounts receivable (net) 39,890 37,410 Inventories 54,460 56,950 Prepaid expenses 4,810 6,120 52,130 Accounts payable (merchandise creditors) 47,890 28,480 31,280 Wages payable 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 out flows, 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 fiow from operating activities: Depreciation Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventories Increase in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flow from operating activities