The net income reported on the income statement for the current year was $115,700. Depreciation recorded on store equipment for the year amounted to $19,100. 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	$45,930		$42,260
Accounts receivable (net)	32,930		31,230
Merchandise inventory	44,970		47,540
Prepaid expenses	5,050		4,010
Accounts payable (merchandise creditors)	43,040		39,980
Wages payable	23,520		26,120

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.

Statement of Cash Flows (partial)

Cash Hloes from Operating Acb The net income reported on the income statement for the current year was $115,700. Depreciation recorded on store equipment for the year amounted to $19.100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follawa End of Year $45,930 32,930 44,970 5,050 43,040 22,520 Beginning of Year Cash Accounts recalvabla (net) Merchandise inventory Prepaid expenses Accounts payabla (marchandise creditors) Wages payable a. Prapare the Cash Flows from Operating Activities section of the statamant of cach flows, using the indirect method. Uss the minus sign to indicate cash outflows, cash paymants, dacreases in cash, or any negative adjustmants. 542.260 31,230 47,540 4,010 39,980 26,120 Statement of Cach Flows (partial) Cash flowa from operating Adjustments to reconcile net income to net cash flow from operating activities Changes in current operating assets and labilties Net cash flow from operating activities b. 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