eBook Show Me How Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $315,800. Depreciation recorded on equipment and a building amounted to $94,400 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year $87,790 111,320 219,480 12,200 98,060 14,130 Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable $93,060 114,840 197,850 13,120 103,850 12,940 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) ignment takeAssignmentMain doinvoker-assignments&takeAssignm 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: Net income 315,800 94400 3,520 21,630 X Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventories Increase in prepaid expenses x Decrease in accounts payable Decrease in salaries payable x 920 5,790 X 1,190 Net cash flow from operating activities