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Just need the amounts Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $123,800. Depreciation

Just need the amounts

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Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $123,800. Depreciation recorded on store equipment for the year amounted to $20,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $49,400 $45,450 Accounts receivable (net) 35,420 33,590 Inventories 48,360 51,130 Prepaid expenses 5,430 4,320 Accounts payable (merchandise creditors) 46,290 43,000 Wages payable 25,290 28,090 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 out flows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Net income ~ v Adjustments to reconcile net income to net cash flow from operating activities: Depreciation V Changes in current operating assets and liabilities: Increase in accounts receivable * v Decrease in inventories * v Increase in prepaid expenses Increase in accounts payable Decrease in wages payable * v Net cash flow from operating activities Feedback Check My Work a. Compute the increases and decreases in the current asset/liability accounts over the period. Determine what affect these changes would have on cash. Learning Objective 1 and Learning Objective 2

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