Chapter 16

The net income reported on the income statement for the current year was $126,100. Depreciation recorded on store equipment for the year amounted to $20,800. Balances of the current asset and c liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year $47,030 Cash $50,570 36,260 Accounts receivable (net) 34,760 52,910 Merchandise inventory 49,510 Prepaid expenses 5,560 4,470 44,490 Accounts payable (merchandise creditors) 47,380 25,890 Wages payable 29,060 Hide 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 and for any adjustments, if required