Cash Flow From Operating Activities (Indirect Method) The Smithfield Company owns no plant assets and had the following income statement for the year: Sales revenue $1,610,000 Cost of goods sold $1,078,000 Wages expense 294.000 Rent expense 86,800 63.000 1.521.800 Net income $88.200 Insurance expense Additional information about the company includes: End of Beginning of Year Year Accounts receivable $103.600 $68,600 Inventory 98.000 120,400 Prepaid insurance 7,000 9.800 Accounts payable 36,400 39.200 Wages payable 16.800 18.200 S Use the preceding information to calculate the cash flow from operating activities using the indirect method. Remember to use negative signs with answers when appropriate. Cash Flow from Operating Activities Net Income Add (deduct) items to convert net income to cash basis Accounts Receivable Inventory Prepaid Insurance Accounts Payable Wages Payable Cash Provided by Operating Activities . S