The net income reported on the income statement for the current year was $126,200. Depreciation recorded on store equipment for the year amounted to $20,800. 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 $50,480 $45,940 Accounts receivable (net) 36,190 Merchandise inventory 49,420 33,950 51,680 4,360 Prepaid expenses 5,550 47,300 Accounts payable (merchandise creditors) Wages payable 43,460 28,390 25,850 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 flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: accrual basis Net cash flow from operating activities cash basis of accounting. For example revenues are recorded on the income b. Cash flows from operating activities differs from net income because it does not use the statement when