Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $119,000. Depreciation recorded on store equipment for the year amounted to $19,600. 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) $48,550 $44,670 34,810 33,010 Merchandise Inventory 47,530 50,250 Prepaid expenses 5,340 4,240 Accounts payable (merchandise creditors) 45,490 Wages payable 24,860 42,260 27,610 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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and labilities: