Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $134,700. Depreciation recorded on store equipment for the year amounted to $22,200. 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 $54,820 $49,890 Cash 39,310 36,870 Accounts receivable (net) Merchandise inventory 53,670 56,130 Prepaid expenses 6,030 4,740 51,370 47,200 Accounts payable (merchandise creditors) Wages payable 28,070 30,830 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 I 11100 Increase in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flow from operating activities