The net income reported on the income statement for the current year was $246,400. Depreciation recorded on equipment and a building amounted to $73,700 for the year. 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	$68,010		$71,410
Accounts receivable (net)	86,240		88,120
Inventories	170,030		151,820
Prepaid expenses	9,450		10,070
Accounts payable (merchandise creditors)	75,970		79,690
Salaries payable	10,950		9,930

Question Content Area

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 outflows, cash payments, decreases in cash, or any negative adjustments.

Statement of Cash Flows (partial)

Cash flows from operating activities:
Decrease in prepaid expensesDepreciationIncrease in inventoriesNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Decrease in accounts payableDecrease in accounts receivableDepreciationIncrease in accounts receivableDepreciation	Depreciation
Changes in current operating assets and liabilities:
Decrease in accounts receivableDecrease in salaries payableDepreciationIncrease in accounts receivableDecrease in accounts receivable	Decrease in accounts receivable
Decrease in inventoriesIncrease in accounts receivableIncrease in inventoriesIncrease in prepaid expensesIncrease in inventories	Increase in inventories
Decrease in prepaid expenses increase in accounts payableIncrease in accounts receivableIncrease in prepaid expensesDecrease in prepaid expenses	Decrease in prepaid expenses
Decrease in accounts payable Decrease in salaries payableDepreciationIncrease in accounts payableDecrease in accounts payable	Decrease in accounts payable
Decrease in salaries payableIncrease in accounts receivable Increase in prepaid expenses Increase in salaries payableIncrease in salaries payable	Increase in salaries payable
Net cash flow from operating activities