PLEASE ANSWER ALL OF THE FOLLOWING QUESTIONS BELOW:

Changes in Current Operating Assets and LiabilitiesIndirect Method Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $27,400 $26,500 Inventory 76,700 77,400 Accounts payable 17,600 16,400 Dividends payable 21,000 23,000 Adjust net income of $106,700 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $124,000. Depreciation recorded on store equipment for the year amounted to $20,500. 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 $48,110 $44,260 Accounts receivable (net) 34,490 32,710 Inventories 47,100 49,790 5,290 4,200 Prepaid expenses Accounts payable (merchandise creditors) Wages payable 45,080 41,870 24,630 27,350 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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when