The net income reported on the income statement for the current year was $364,000. Depreciation recorded on store equipment for the year amounted to $14,500. 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	$43,210	$38,400
Accounts receivable (net)	31,360	29,020
Merchandise inventory	39,590	45,160
Prepaid expenses	3,620	4,730
Accounts payable (merchandise creditors)	41,480	35,590
Wages payable	21,910	22,970

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.
B.	Briefly explain why net cash flow from operating activities is different from net income.

Please exact answers. Thank you!

Choices or text enures. use une minus sign lo marcate casi Outlows, cash paymenis, uecreases in cash and for any adjustments, il requireu. Score: 72/77 Statement of Cash Flows (partial) Cash flows from operating activities: 2 Net income $364,000.00 3 Adjustments to reconcile net income to net cash flow from operating activities: 4 Depreciation 14,500.00 5 Changes in current operating assets and liabilities: 6 Increase in accounts receivable (2,340.00) 5,570.00 7 Decrease in merchandise inventory 8 Decrease in prepaid expenses 1,070.00 9 Increase in accounts payable 5,890.00 (1,060.00) 10 Decrease in wages payable 11 Net cash flow from operating activities $387,630.00 B. Briefly explain why net cash flow from operating activities is different from net income. Cash flows from operating activities differs from net income because it does not use the of accounting. For example, revenues are recorded on the income statement when accrual basis Points: 012 cash basis Feedback Check My Work Review the definition of accrual accounting. How does this differ with the concept of cash payments and receipts? B. Briefly explain why net cash flow from operating activities is different from net income. Cash flows from operating activities differs from net income because it does not use the of accounting. For example, revenues are recorded on the income statement when cash is received Points: 0/2 they are earned Check My Work Review the definition of accrual accounting. How does this differ with the concept of cash payments and receipts