Cash Flow from Operating Activities (Indirect Method) The Lincoln Company owns no plant assets and had the following income statement for the year: Sales revenue $975,000 Cost of goods sold $611,000 Wages expense 143,000 Rent expense 54,600 Insurance expense 19,500 828,100 Net income $146,900 Additional information about the company includes: Accounts receivable Inventory Prepaid insurance Accounts payable Wages payable End of Year Beginning of Year $70,200 $63,700 78,000 85,800 10,400 9,100 28,600 23,400 11,700 14,300 $ Use the preceding information to calculate the cash flow from operating activities using the indirect method. Use negative signs with cash outflow answers. Cash Flow from Operating Activities Net Income 113,000 X Add (deduct) items to convert net income to cash basis Accounts Receivable Increase (5,000) * Inventory Decrease 6,000 x Prepaid Insurance (1,000) Accounts Payable 4,000 X Wages Payable (2,000) X Cash Provided by Operating Activities 115,000 x . Increase . Increase Decrease 4 $