eBook Show Me How Calculator Print them Cash Flows from Operating Activities - Indirect Method The net income reported on the income statement for the current year was $124,100. Depreciation recorded on store equipment for the year amounted to $20,500. 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 $47,780 $43,480 Accounts receivable (net) 34,260 32,130 Inventories 46,780 48,920 Prepaid expenses 5,260 4,130 Accounts payable (merchandise creditors) 44,770 41,130 Wages payable 24,460 15,870 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: Net cash flow from opera ctivities Check My Works more Check My Works remaining 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 of accounting. For example revenues are recorded on b. Cash flows from operating activities differs from net income because it does not use the the income statement when