Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $144,100. Deprecation recorded on store equipment for the year amount to $23,800. 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 $57,640 $53,030 Accounts receivable (net) 41,330 39,190 Inventories 56,430 59,660 Prepaid expenses 6,340 5,040 Accounts payable (merchandise creditors) 54,010 50,170 Wages payable 29,510 32,770 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flown, 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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and abilities: Wages payable 29,510 32,770 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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: III I O Net cash flow from operating activities Accounting numenfeld of accounting. For example revenues b. Cash flows from operating activities differs from net income because it does not use the are recorded on the income statement when Previous Next)