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Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for...

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Accounting

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Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $133,200. Depreciation recorded on store equipment for the year amounted to $22,000. 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 $51,950 $ 47,790 Accounts receivable (net) 37,250 35,320 Inventories 50,860 53,760 Prepaid expenses 5,710 4,540 Accounts payable (merchandise creditors) 48,680 45,210 Wages payable 26,600 29,530 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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: III Net cash flow from operating activities of accounting. For example revenues are recorded on b. Cash flows from operating activities differs from net income because it does not use the the income statement when

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