Cash Flow from Operating Activities (Indirect Method) The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue Cost of goods sold $1,206,000 $1,710,000 Wages expense 378,000 Rent expense 75,600 Utilities expense 27,000 1,686,600 Net income $23,400 Additional information about the company includes: End of Beginning of Year Year Accounts receivable $115,200 $106,200 Inventory 108,000 154,800 Prepaid rent 14,400 12,600 Accounts payable 39,600 50,400 Wages payable 16,200 10,800