Cash Hows from Operating Activities$-$indirect Method a$.$ Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate

cash out flows, cash payments, decreases in cash, or any negative adjustments.

Statement of Cash Flows $($partial$)$

Cash flows from operating activities:

Adjustments to reconcile net income to net cash flow from operating activities:

Changes in current operating assets and liabilities:

Net cash flow from operating activities

b$.$ Cash flows from operating activities differs from net income because it does not use the

of accounting. For example revenues

are recorded on the income statement when

The net income reported on the income statement for the current year was $$139,200.$ Depreciation recorded on store equipment for the year amounted

to $$23,000.$ Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

a$.$ Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate

cash out flows, cash payments, decreases in cash, or any negative adjustments.

Statement of Cash Flows $($partial$)$

Cash flows from operating activities:

Adjustments to reconcile net income to net cash flow from operating activities:

Changes in current operating assets and liabilities: