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Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $128,600. Depreciation recorded on store equipment for the year amounted to $21,200. 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 $49,640 $45,170 Accounts receivable (net) 35,590 33,380 Inventones 48,600 50,820 Prepaid expenses 5,460 4,290 Accounts payable (merchandise creditors) 46,510 42,730 Wages payable) 25,420 27,920 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 reconcle net income to net cash flow from operating activities: Changes in current operating assets and lablites:
Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcle net income to net cash flow from operating activities: Changes in current operating assets and labities: Net cash flow from operating activities b. Cash flows from operating activities differs from net income because it does not use the statement when ☐☐☐☐☐ of accounting. For example revenues are recorded on the income