Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $123,500. Depreciation recorded on store equipment for the year amounted to $20,400 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 Gash $49,400 $44,950 Accounts receivable (net) 35,420 33,220 Inventories 48,360 50,570 Prepaid expenses 5.430 4,270 Accounts payable (merchandise creditors) 46,290 42,520 Wages payable 25,290 27,780 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. 5,430 Prepaid expenses Accounts payable (merchandise creditors) Wages payable 46,290 25,290 4,270 42,520 27.780 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 cath, or any negative adjustments Statement of Cash Flows (partial) Cash flows from operating activities: pet income to net cash flow from operating activities: Decrease in prepaid expenses Depreciation ha assets and liabilities: Increase in inventories Net Income Net cash flow from operating activities D. Accounts payable 25,290 27,780 Wages payable a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect meth 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: assets and liabilities: Decrease in accounts payable Decrease in accounts receivable Depreciation Increase in wages payable Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the the income statement when of ac 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: Depreciation Increase in accounts receivable Increase in inventories Increase in wages payable vities b. Cash flows from operating activities differs from net income because it does not use the of accounting. For es the income statement when All work saved, Save an MacBook Air 80 F3 Q F4 0 DII FS F6 F7 F8 79 VO Inventories 48,360 4,270 Prepaid expenses Accounts payable (merchandise creditors) Wages payable 5,430 46,290 42,520 25,290 27,780 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, un 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: Decrease in accounts receivable Decrease in inventories Decrease in prepaid expenses vities Increase in inventories b. Cash flows from operating activities differs from net income because it does not use the the income statement when All work saved. MacBook Air Show Me How eBook Inventories 48,360 50,570 5,430 46,290 25,290 4,270 42,520 Prepaid expenses Accounts payable (merchandise creditors) Wages payable 27,780 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the inc 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: Decrease in accounts receivable Increase in inventories vities Increase in prepaid expenses Increase in wages payable ities differs from net income because it does not use the the income statement when All work saved. Wages payable 25,290 27,78 a. Prepare the "Cash flows from operating activities" section of the statemer 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: Decrease in accounts payable tivities Depreciation Increase in accounts payable Increase in wages payable vities differs from net income because it does not us All work saved. MacBook Air Prepaid expenses 46,290 42,520 Accounts payable (merchandise creditors) Wages payable 25,290 27,780 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indire 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: ets and liabilities: Decrease in accounts receivable Decrease in prepaid expenses Decrease in wages payable Increase in wages payable Net cash flow from o ctivities dropdown b. Cash flows from operating activities differs from net income because it does not use the the income statement when Inventorie 13360 30370 4,270 Prepaid expenses 5,430 Accounts payable (merchandise creditor) 46,290 42,520 Wages payable 25,290 27,700 2. Prepare the cash flows from operating activities action of the statement of cash flows, using the indirect mathat. Use the minut ponto indicate cash outthew, cash payments, decreases in cash, or any negative adjustments Statement of Cash Flow (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 W I O Net cash flow from operatin they are earned a b. Cash flows from operating the income statement when cash is received lom net income because it does not use the of accounting. For example revenues are recorded on Prepaid expenses 5,430 4,270 Accounts payable (merchandise creditors) 46,290 42,520 Wages payable 25,290 27,780 2. Prepare the "Cash flows from operating activities section of the statement of cash flows, using the indirect method. Use the minussion to indicate 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: accrual basis Net cash flow from operating activities cash basis b. Cash flows from operating activities differs from net income because it does not use the the income statement when of accounting. For example rever