The net income reported on the income statement for the currentyear was $410,400. Depreciation recorded on store equipment for theyear amounted to $17,470. Balances of the current asset and currentliability accounts at the beginning and end of the year are asfollows:
| Endof Year | Beginning of Year |
|---|
| Cash | $39,800 | $37,960 |
| Accounts receivable (net) | 31,820 | 27,630 |
| Merchandise inventory | 39,230 | 43,060 |
| Prepaid expenses | 3,750 | 4,820 |
| Accounts payable (merchandisecreditors) | 39,770 | 35,040 |
| Wages payable | 20,280 | 24,950 |
Required:
| A. | Prepare the Cash Flows fromOperating Activities section of the statement of cash flows, usingthe indirect method. Refer to the Amount Descriptions list providedfor the exact wording of the answer choices for text entries. Usethe minus sign to indicate cash outflows, cash payments, decreasesin cash and for any adjustments, if required. |
| B. | Briefly explain why net cashflow from operating activities is different than netincome. |
