Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $143,600. Depreciation recorded on store equipment for the year amounted to $23,700. 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 $55,430 $50,440 Accounts receivable (net) 39,740 37,280 Merchandise Inventory 54,270 56,750 Prepaid expenses 6,100 4,790 Accounts payable (merchandise creditors) 51,940 47,720 Wages payable 28,380 31,170 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) S 143.600 Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation 23.700 Study DaddyGet Bachelor of Businet 143.600 23,700 Book Show Me How Cash flows from operating activities Net Income Adjustments to reconcile net income to not 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 Chexy Wom a. Calculate the increases and decreases in the current asset/liability accounts over the period. Determine what affect these changes would have on cash of accounting. For example b. Cash flows from operating activities differ from net income because it does not use the accrual basis revenues are recorded on the income statement when they are earned 12:41 AM