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Analyzing Operating Cash Flows (Direct Method) Lincoln Company owns no plant assets and reported the following income statement for the current year: Sales $750,000 Cost

Analyzing Operating Cash Flows (Direct Method) Lincoln Company owns no plant assets and reported the following income statement for the current year:

Sales $750,000 Cost of goods sold $470,000 Wages expense 110,000 Rent expense 42,000 Insurance expense 15,000 637,000 Net income $113,000 End of Year Beg. of Year Accounts receivable $54,000 $49,000 Inventory 60,000 66,000 Prepaid insurance 8,000 7,000 Accounts payable 22,000 18,000 Wages payable 9,000 11,000 Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense. Note: Do not use negative signs with any of your answers.

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