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adjustments. Cash Flows from Operating Activitles-Indirect Method The net income reported on the income statement for the current year was $126,000. 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 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