Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $132,800. Depreciation recorded on store equipment for the year amounted to $21,900. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year $52,590 37,710 51,490 5,780 49,280 26,930 Beginning of Year Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable $47,860 35,370 53,840 4,550 45,280 29,580 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 liabilities: Net cash flow from operating activities of accounting. For example revenues b. Cash flows from operating activities differs from net income because it does not use the recorded on the income statement when