Instructions During the year, Hepworth Company earned a net income of 561,025. Beginning and ending balances for the year for selected accounts are as follows: Account Beginning Ending $100,000 $119,500 Cash Accounts receivable 68,200 99,650 Inventory 36.800 52.400 Prepaid expenses 27,800 29.800 Accumulated depreciation 81,000 91.600 44,900 54,825 Accounts payable Wages payable 27,000 14.000 There were no financing or investing activities for the year. The above balances reflect all of the adjustments needed to adjust net income to operating cash flows. Required: 1. Prepare a schedule of operating cash flows using the indirect method. 2. Suppose that all the data used in Requirement 1 except the ending accounts payable and cash balances are not known. Assume also that you know that the operating cash flow for the year was $20,475. What is the ending balance of accounts payable? 3. Conceptual Connection: Hepworth has an opportunity to buy some equipment that will significantly increase productivity. The equipment costs $25,000. Assuming exactly the same data used for Requirement 1, can Hepworth buy the equipment using this year's operating cash flows? 1. Prepare a schedule of operating cash flows using the indirect method. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Hepworth Company Schedule of Operating Cash Flows 1 Cash flows from operating activities: 2 3 Add (deduct) adjusting items: 4 5 6 7 8 9 10 Final Questions 2. Suppose that all the data used in Requirement 1 except the ending accounts payable and cash balances are not known. Assume also that you know that the operating cash flow for the year was $20,475. What is the ending balance of accounts payable? $ 3. Conceptual Connection: Hepworth has an opportunity to buy some equipment that will significantly increase productivity. The equipment costs $25,000. Assuming exactly the same data used for Requirement 1, can Hepworth buy the equipment using this year's operating cash flows