The net income reported on the income statement for the current year was $371,000. Depreciation recorded on store equipment for the year amounted to $16,880. 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	$42,300	$40,040
Accounts receivable (net)	29,570	28,890
Merchandise inventory	39,370	45,670
Prepaid expenses	4,990	3,520
Accounts payable (merchandise creditors)	40,340	36,430
Wages payable	22,090	24,330

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 than net income Amount Descriptions Amortization of intangible assets Decrease in accounts payable Decrease in accounts receivable Decrease in merchandise inventory Decrease in prepaid expenses Decrease in wages payable Depreciation Increase in accounts payable Increase in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in wages payable Net cash flow from operating activities Net cash flow used for operating activities Net income Net loss