Cash Flows from (Used for) Operating Activities

The net income reported on the income statement for the current year was $147,400. Depreciation recorded on store equipment for the year amounted to $24,300. 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	$56,450		$51,370
Accounts receivable (net)	40,470		37,960
Merchandise inventory	55,260		57,790
Prepaid expenses	6,210		4,880
Accounts payable (merchandise creditors)	52,890		48,600
Wages payable	28,900		31,750

Question Content Area

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.

blank Statement of Cash Flows (partial) blank

Cash flows from operating activities:
CashDecrease in accounts receivableDepreciationIncrease in wages payableNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
CashDecrease in accounts payableDecrease in accounts receivableDepreciationIncrease in wages payableDepreciation	Depreciation
Changes in current operating assets and liabilities:
CashDepreciationIncrease in accounts receivableIncrease in inventoriesIncrease in wages payableIncrease in accounts receivable	Increase in accounts receivable
CashDecrease in accounts receivableDecrease in merchandise inventoryIncrease in inventoriesIncrease in prepaid expensesDecrease in merchandise inventory	Decrease in merchandise inventory
CashDecrease in accounts receivableIncrease in prepaid expensesIncrease in inventoriesIncrease in wages payableIncrease in prepaid expenses	Increase in prepaid expenses
CashDecrease in accounts payableDepreciationIncrease in accounts payableIncrease in wages payableIncrease in accounts payable	Increase in accounts payable
CashDecrease in accounts receivableDecrease in wages payableIncrease in prepaid expensesIncrease in wages payableDecrease in wages payable	Decrease in wages payable
Net cash flow from operating activities