The net income reported on the income statement for the current year was $$106,800.$ Depreciation recorded on store equipment for the year amounted to $$41,700.$ Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

Line Item Description End of Year Beginning of Year

Cash $$24,100$ $$19,700$

Accounts receivable $($net$)65,00054,000$

Inventories $47,20052,000$

Prepaid expenses $3,2506,000$

Accounts payable $($merchandise creditors$)23,40018,500$

Wages payable $4,7006,400$

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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.

blank

Statement of Cash Flows $($partial$)$

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Line Item Description Amount Amount

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

$$-$ Select $-$

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

$-$ Select $-$

Changes in current operating assets and liabilities:

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$$-$ Select $-$

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b$.$ Cash flows from operating activities differs from net income because it does not use the fill in the blank $1$ of $2$

of accounting. For example revenues are recorded on the income statement when fill in the blank $2$ of $2$

$.$