Cash Flows from Operating Activities-indirect Method The net income reported on the income statement for the current year was 5:47,200. Depreciation recorded on store equipment for the year amounted to $24,300. 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 $56,520 $51,430 Cash 40.520 38,010 57.860 Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Wages payable 55,330 6,220 4,890 52,960 48,650 28,940 31,780 a. Prepare the Cash Flows from Operating Activities section of the statement of cash rows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Statement or Cash Flows (partial) Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 147.200 24.300 Changes in current operating assets and liabilities: Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when