Cash Flows from Operating ActivitiesIndirect Method

The net income reported on the income statement for the current year was $128,800. Depreciation recorded on store equipment for the year amounted to $21,300. 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	$49,970		$45,470
Accounts receivable (net)	35,830		33,600
Merchandise inventory	48,920		51,150
Prepaid expenses	5,500		4,320
Accounts payable (merchandise creditors)	46,820		43,010
Wages payable	25,580		28,100

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:
Depreciation
Changes in current operating assets and liabilities:
Increase in accounts receivable
Decrease in merchandise inventory
Increase in prepaid expenses
Increase in accounts payable
Decrease in wages payable
Net cash flow from operating activities		$