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 Beginning of Year $53,390 $48,580 Cash Accounts receivable (net) 38,280 35,900 Inventories 52,270 54,650 Prepaid expenses 5,870 4,620 Accounts payable (merchandise creditors) 50,030 45,960 Wages payable 27,340 30,020 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: [ 1 1111 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: 2010 Net cash flow from operating activities of accounting. For example revenues are recorded on b. Cash flows from operating activities differs from net income because it does not use the the income statement when