The net income reported on the income statement for the current year was $361,300. Depreciation recorded on store equipment for the year amounted to $15,520. 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	$40,180	$40,070
Accounts receivable (net)	30,070	28,060
Merchandise inventory	40,390	45,420
Prepaid expenses	4,960	3,750
Accounts payable (merchandise creditors)	38,610	37,710
Wages payable	20,330	24,800

Required:

A.

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

A. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

Score: 53777 Statement of Cash Flows (partial) 1Cash flows from operating activities: $361,300.00 2 Net income Adjustments to reconcile net income to net cash flow from operating activities: 4Depreciation 5 Changes in current operating assets and liabilities: 6Increase in accounts receivable 7Decrease in merchandise inventory 8 Increase in prepaid expenses 9 Increase in accounts payable 10 Decrease in wages payable 11 Net cash flow from operating activities 15,520.00