Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $140,200. Depreciation recorded on store equipment for the year amounted to $23,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Beginning End of Year of Year Cash Accounts receivable (net) $53,980 $49,120 38,700 36,300 Merchandise inventory 52,850 55,260 Prepaid expenses 5,940 4,670 Accounts payable (merchandise creditors) 50,580 46,470- Wages payable 27,640 30,360 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. Cash flows from operating activities: Net income blank Statement of Cash Flows (partial) blank Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation 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. Cash flows from operating activities: Net income blank Statement of Cash Flows (partial) blank Adjustments to reconcile net income to net cash flows from (used for) 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 Feedback Beck My Work b. Cash flows from operating activities differ from net income because it does not use the accrual basis example revenues are recorded on the income statement when they are earned of accounting. For