Cash Flows from Operating ActivitiesIndirect Method The net income reported on the income statement for the current year was $147,900. Depreciation recorded on store equipment for the year amounted to $24,400. 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 Cash $52,930 Accounts receivable (net) 39,120 Merchandise inventory 59,550 $57,530 41,250 56,320 6,330 53,910 29,460 5,030 Prepaid expenses Accounts payable (merchandise creditors) 50,070 Wages payable 32,710 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 Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: lllll 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