Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $139,500. Depreciation recorded on store equipment for the year amounted to $23,000. 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 Accounts receivable (net) $55,660 $50,650 39,910 37,430 Merchandise inventory 54,490 56,980 Prepaid expenses 6,120 4,810 Accounts payable (merchandise creditors) 52,150 Wages payable 28,500 47,910. 31,300 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) 28,500 31,300 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. Wages payable Statement of Cash Flows (partial) 0000000 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in merchandise inventory Increase in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flow from operating activities