The net income reported on the income statement for the current year was $$250,000.$ Depreciation recorded on equipment and a building amounted to $$74,800$ 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 $$62,500$ $$66,250$

Accounts receivable $($net$)79,25081,750$

Inventories $156,250140,850$

Prepaid expenses $8,6909,340$

Accounts payable $($merchandise creditors$)69,81073,940$

Salaries payable $10,0609,210$

Question Content Area

a$.$ Prepare the Cash Flows from $($used for$)$ 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.

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Statement of Cash Flows $($partial$)$

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Cash flows from $($used for$)$ operating activities:

Net income

$Net income

$250,000$

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities:

Depreciation

Depreciation

$74,800$

Changes in current operating assets and liabilities:

Decrease in accounts receivable

Decrease in accounts receivable

$2,500$

Increase in inventories

Increase in inventories

Decrease in prepaid expenses

Decrease in prepaid expenses

$650$

Decrease in accounts payable

Decrease in accounts payable

Increase in salaries payable

Increase in salaries payable

$850$

Net cash flows from operating activities $fill in the blank $40$e$6$ca$045041$fc$3\_15$