Analyzing Operating Cash Flows (Direct Method)

Lincoln company owns no plant assets and reported the following income statement for the current year:

Sales		$375,000
Cost of goods sold	$235,000
wages expense	55,000
rent expense	21,000
insurance expense	7,500	318,500
net income		$56,500

	End Of Year	Beginning of year
Accounts Receivable	$21,600	$19,600
Inventory	24,000	26,400
Prepaid insurance	3,200	2,800
Accounts payable	8,800	7,200
Wages Payable	3,600	4,400

Calculate the net cash flow from operating activities using the direct method. show a related cash flow for each revenue and expense.

Cash flows from operating activities (Direct Method)

Cash Received from Customers		$ 0
Cash paid for merchandise purchased	$ 0
Cash Paid to Employees	0
Cash Paid to rent	21,0000
Cash Paid for Insurance	0	0
Net Cash Provided by operating Activities		0

Compute its operating cash flow to current liabilities (OCFCL) ratio. (Assume current liabilities consist of accounts payable and wages payable.)

Round answer to two decimal places.