Cash Flows from Operating Activities--Indirect Method The net income reported on the income statement for the current year was $282,500. Depreciation recorded on equipment and a building amounted to $84,500 for the year. 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 $77,970 $81,090 Accounts receivable (net) 98,870 100,070 Inventories 194,930 172,400 Prepaid expenses 10,840 11,430 Accounts payable (merchandise creditors) 87,090 90,500 Salaries payable 12,550 11,270