The net income reported on the income statement for the current year was $131,800. Depreciation recorded on store equipment for the year amounted to $21,700. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

Cash$51,270$47,170

Accounts receivable (net)36,76034,860

Merchandise inventory50,19053,070\

Prepaid expenses5,6404,480

Accounts payable (merchandise creditors)48,04044,620

Wages payable26,25029,150

a.If we can Prepare the Cash Flows from Operating Activities section of thestatement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.