Cash Flows from (Used for) Operating Activities

The net income reported on the income statement for the current year was $139,800. 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:

	End of Year		Beginning of Year
Cash	$54,800		$50,420
Accounts receivable (net)	39,290		37,260
Merchandise inventory	53,650		56,720
Prepaid expenses	6,030		4,790
Accounts payable (merchandise creditors)	51,350		47,700
Wages payable	28,060		31,160

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 ce14f7fd300f01e_2
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
	fill in the blank ce14f7fd300f01e_4
Changes in current operating assets and liabilities:
	fill in the blank ce14f7fd300f01e_6
	fill in the blank ce14f7fd300f01e_8
	fill in the blank ce14f7fd300f01e_10
	fill in the blank ce14f7fd300f01e_12
	fill in the blank ce14f7fd300f01e_14
Net cash flow from operating activities		$fill in the blank ce14f7fd300f01e_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_____.