Cash Flows from (Used for) Operating Activities

The net income reported on the income statement for the current year was $138,900. Depreciation recorded on store equipment for the year amounted to $22,900. 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 $54,730 $49,800

Accounts receivable (net) 39,240 36,800

Merchandise inventory 53,580 56,030

Prepaid expenses 6,020 4,730

Accounts payable (merchandise creditors) 51,280 47,110

Wages payable 28,020 30,780

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.

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Statement of Cash Flows (partial)

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Cash flows from operating activities:

$- Select -

Adjustments to reconcile net income to net cash flows from (used for) operating activities:

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Changes in current operating assets and liabilities:

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Net cash flow from operating activities $fill in the blank 56ae3c0a7fbefe0_15

Question Content Area

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

.