et from cash rating activities, Chapter 16 Statement Cash Flows 773 of Ex 16-5 cash flows from operating activities-indirect method OBJ. 1,2 s400,000. Depre The net income reported on the income statement for the current year was ciation recorded on store equipment for the year amounted to $16,000. Balances of the cur- rent asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $38,400 $41,600 Accounts receivable (net) 28,000 30,400 Merchandise inventory 44,000 40,000 Prepaid expenses 3,600 4,800 Accounts payable (merchandise creditors) 36.000 40,000 Wages payable 24,000 21,200 a. Prepare the Cash Flows from operating Activities section of the statement of cash flows, using the indirect method. b. Briefly explain why net cash flow from operating activities is different than net income