Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $132,000. Depreciation recorded on store equipment for the year amounted to $21,800. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End Beginning of Year of Year Cash $50,560 546,520 Accounts receivable (net) 36,250 34,380 Merchandise Inventory 49,500 52,340 Prepaid expenses 5,560 4,420 Accounts payable (merchandise creditors) 47,370 44,010 Wages payable 25,890 28,750 2. Prepare the Cash Flows from (used for) 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: Adjustments to reconcile net income to net cash flows from (used for) operating activities: a. Prepare the Cash Flows from (used for) 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 activides: Adjustments to reconcile net income to net cash flows from (used for operating activities: Changes in current operating assets and liabilities: W I Net cash now from corating activities b. Cathrows from operating activities differ from net income because it does not use the recorded on the income statement when of accounting. For example revenues are