Question
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started