eBook Calculator Show Me How Cash Flows from Operating Activities-indirect Method The net income reported on the income statement for the current year was $126,200. Depreciation recorded on store equipment for the year amounted to $20,800. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Wages payable End of Year Beginning of Year $51,620 $46,970 37,010 34,710 50,540 52,840 5,680 4,460 48,370 26,430 44,430 29,030 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 outflows, 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 abilities: Check My Work Emal instructor Save and Ex Submit Assignment for Grading eBook SOWIE GATENTI Inventories Prepaid expenses Accounts payable (merchandise creditors) Wages payable 50,540 5,680 48,370 26,430 52,840 4,460 44,430 29,030 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 outflows, cast 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 the income statement when of accounting. For example revenues are recorded on Check My Work Previous Next