Instructions Tne income statement for Piura Merchandising Corporation is as follo Piura Merchandising Corporation Income Statement For the Year Ended December 31, 20X1 Sales $ 1,480,000 Cost of goods sold Beginning inventory $ 425,000 Purchases 770,000 Ending inventory (260,000) Instructions (935,000) Depreciation expense (66,000) Amortization of patent (20,000) Wages expense (71,000) Insurance expense (39,500) Income before taxes $ 348,500 Income taxes (all current) (103,500) Net income $ 245,000 Other information is as follows: Other information is as follows. A Accounts payable decreased by $19,000 during the year B. Accounts receivable increased by $23,500 C. All wages were paid at the beginning of the year, at the end of the year, wages payable had a balance of 510,500 D. Prepaid insurance increased by $24,000 during the year structions Amount Descriptions Operating Cash Flows tructions Amount Descriptions Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows. Amount Descriptions Amortization of patent Decrease in accounts payable Decrease in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in wages payable Depreciation expense Increase in accounts payable Increase in accounts receivable Instructions Amount Descriptions Operating Cash Flows Instructions Amount Descriptions DELI Cast I wayco payavic Depreciation expense ot Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in prepaid insurance Increase in wages payable Less cost of goods sold Net cash from operating activities Net income Pri Net loss Am Description Operating Cash FlowsIndeed Method were che per te pare new for . Merchango Operating ang G Adidating struction Amount Descriptions Operating Cash Flows - Indirect Method Prepare a schedule that provides the operating cash flows for the year using the indirect method. for text entries.) Piura Merchandising Corporation Operating Cash Flows Using the Indirect Method 1 Cash flows from operating activities: 2 3 Add (deduct) adjusting items: 4 5 6 7 8 9 10 11