1. The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. 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	$23,500		$18,700
   Accounts receivable (net)	56,000		48,000
   Inventory	35,500		40,000
   Prepaid expenses	4,750		7,000
   Accounts payable (merchandise creditors)	21,800		16,800
   Wages payable	4,900		5,800

   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 out flows, cash payments, decreases in cash, or any negative adjustments.

   Statement of Cash Flows (partial)
   Cash flows from operating activities:
   	$fill in the blank bb84b108e07dfb7_2
   Adjustments to reconcile net income to net cash flow from operating activities:
   	fill in the blank bb84b108e07dfb7_4
   Changes in current operating assets and liabilities:
   	fill in the blank bb84b108e07dfb7_6
   	fill in the blank bb84b108e07dfb7_8
   	fill in the blank bb84b108e07dfb7_10
   	fill in the blank bb84b108e07dfb7_12
   	fill in the blank bb84b108e07dfb7_14
   Net cash flow from operating activities		$fill in the blank bb84b108e07dfb7_15

   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