Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $117,100. Depreciation recorded on store equipment for the year amounted to $19,300. 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 $45,080 $41,470 Accounts receivable (net) 32,320 30,650 Inventories 44,130 46,650 Prepaid expenses 3,940 4,960 Accounts payable (merchandise creditors) 39,230 42,240 Wages payable 23,080 25,630 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 out flows, 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 b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when