Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $154,900. Depreciation recorded on store equipment for the year amounted to $25,600. 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	$61,030		$56,150
Accounts receivable (net)	43,760		41,490
Merchandise inventory	59,750		63,170
Prepaid expenses	6,710		5,330
Accounts payable (merchandise creditors)	57,190		53,120
Wages payable	31,250		34,700

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:
Net income	$fill in the blank 958e2bf8a073048_2
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation	fill in the blank 958e2bf8a073048_4
Changes in current operating assets and liabilities:
Increase in accounts receivable	fill in the blank 958e2bf8a073048_6
Decrease in merchandise inventory	fill in the blank 958e2bf8a073048_8
Increase in prepaid expenses	fill in the blank 958e2bf8a073048_10
Increase in accounts payable	fill in the blank 958e2bf8a073048_12
Decrease in wages payable	fill in the blank 958e2bf8a073048_14
Net cash flow from operating activities		$fill in the blank 958e2bf8a073048_15