The net income reported on the income statement for the current year was $92,000. Depreciation recorded on store equipment for the year amounted to $18,600. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

Prepare the cash flows from operating activities section of the statement of cash flows, using the indirectmethod.

Transcribed Image Text:

End of Year Beginning of Year Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable $46,700 32,300 54,800 4,000 46,000 21,400 $44,200 31,100 56,700 3,500 42,900 23,600