End of Year Beginning of Year Cash $50,670 $46,110 Accounts receivable (net) 36,330 34,080 Inventories 49,610 51,870 Prepaid expenses 5,570 4,380 Accounts payable (merchandise creditors) Wages payable 47,480 25,940 43,620 28,500 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: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventories Increase in prepaid expenses Increase in accounts payable Decrease in wages payable Net cash flow from operating activities 124,500 20,500 2,250 2,260 1,190 3,860 2,560 33333 b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on