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In: AccountingCash Flows from Operating Activities—Indirect MethodThe net income reported on the income statement for the...Cash Flows from Operating Activities—Indirect MethodThe net income reported on the income statement for the currentyear was $144,400. Depreciation recorded on store equipment for theyear amounted to $23,800. Balances of the current asset and currentliability accounts at the beginning and end of the year are asfollows:End of YearBeginning of YearCash$57,180$52,030Accounts receivable (net)41,00038,450Merchandise inventory55,98058,530Prepaid expenses6,2904,940Accounts payable (merchandise creditors)53,58049,220Wages payable29,28032,150a. Prepare the Cash Flows from OperatingActivities section of the statement of cash flows, using theindirect method. Use the minus sign to indicate cash out flows,cash payments, decreases in cash, or any negative adjustments.Statement of Cash Flows (partial)Cash flows from operating activities:$Adjustments to reconcile net income to netcash flow from operating activities:Changes in current operating assets andliabilities:Net cash flow from operatingactivities$b. Cash flows from operating activities differsfrom net income because it does not use the of accounting. Forexample revenues are recorded on the income statement when .