Cash Flows from (Used for) Operating Activities

The net income reported on the income statement for the current year was $144,700. Depreciation recorded on store equipment for the year amounted to $23,900. 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	$58,750		$54,050
Accounts receivable (net)	42,120		39,940
Merchandise inventory	57,520		60,810
Prepaid expenses	6,460		5,130
Accounts payable (merchandise creditors)	55,050		51,130
Wages payable	30,080		33,400

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 activities:
	$fill in the blank 03de69014fd906b_2
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
	fill in the blank 03de69014fd906b_4
Changes in current operating assets and liabilities:
	fill in the blank 03de69014fd906b_6
	fill in the blank 03de69014fd906b_8
	fill in the blank 03de69014fd906b_10
	fill in the blank 03de69014fd906b_12
	fill in the blank 03de69014fd906b_14
Net cash flow from operating activities		$fill in the blank 03de69014fd906b_15

b. Cash flows from operating activities differ from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .