Please help solve e

Cash Flows from Operating ActivitiesIndirect Method The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. 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 $23,500 $18,700 Accounts receivable (net) 56,000 48,000 Inventory 35,500 40,000 Prepaid expenses 4,750 7,000 Accounts payable (merchandise creditors) 21,800 16,800 Wages payable 4,900 5,800 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) 73,600 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Depreciation 27,400 4,500 73,600 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Depreciation X 27,400 4,500 x Increase in inventories X 8,000 2,250 Decrease in prepaid expenses Increase in accounts payable 5,000 Decrease in wages payable 30,250 x Net cash flow from operating activities 103,850 Feedback 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