Cash Flows from Uperading ACUVIOS- L TD The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. 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 $23.500 $18,700 Accounts receivable (net) 56,000 48.000 Merchandise inventory 35,500 40,000 Prepaid expenses 4,750 7,000 Accounts payable (merchandise creditors) 21,800 16,800 Wages payable 4,900 5,800 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 73,600 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 27.400 Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in merchandise inventory Decrease in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flow from operating activities 5 100.700 X