Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $119,400. Depreciation recorded on store equipment for the year amounted to $19,700. 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 $46,450 $42,270 Accounts receivable (net) 33,300 31,240 Merchandise inventory 45,470 47,550 Prepaid expenses 5,110 4,020 Accounts payable (merchandise creditors) 43,520 39,990 Wages payable 23,780 26,120 a. Prepare the Cash Flows from Operating Activities section of the statement of cash lows, 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 Adjustments to reconcile net income to net cash flow from operating activities Changes in current operating assets and labilities 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 incodbe to net cash flow from operating activities: Adjustments to reconcile Changes in current operating assets and liabilities Net cash flow from operating activities 26,120 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the inc outflows, 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: Depreciation Increase in accounts receivable Increase in inventories Increase in wages payable ooperdang caties 0O