Cash flows from (used for) operating activities-indirect method The net income reported on the income statement for the current year was $131,200. Depreciation recorded on store equipment for the year amounted to $21,600. 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 $50,380 $46,350 Accounts receivable (net) 36,120 34,250 Inventories 49,320 52,140 Prepaid expenses 5,540 4,400 Accounts payable (merchandise creditors) 7,210 Wages payable 25,790 43,850 28,640 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) Amount Amount Line Item Description Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Check My Work Previous Next > Show Me How Wages payable 25,790 28,640 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 eBook Statement of Cash Flows (partial) Line Item Description Amount Amount Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: 0 00000 b. Cash flows from operating activities differs from net income because it does not use the l statement when L of accounting. For example revenues are recorded on the income.