The net income reported on the income statement for the current year was $123,000. Depreciation recorded on store equipment for the year amounted to $20,300. 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	$50,180		$45,660
Accounts receivable (net)	35,980		33,740
Inventories	49,130		51,370
Prepaid expenses	5,520		4,340
Accounts payable (merchandise creditors)	47,020		43,190
Wages payable	25,690		28,220

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.

Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $