Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $151,600. Depreciation recorded on store equipment for the year amounted to $25,000. 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	$60,640		$55,790
Accounts receivable (net)	43,480		41,230
Inventories	59,370		62,760
Prepaid expenses	6,670		5,300
Accounts payable (merchandise creditors)	56,820		52,780
Wages payable	31,050		34,480

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.