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 Cost of goods sold $770,000 $1,150,000 Wages expense 210,000 Rent expense 62,000 Insurance expense 45,000 1,087,000 Net income $63,000 Additional information about the company includes: End of Beginning of Year Accounts receivable $74,000 Year $49,000 Inventory 70,000 86,000 Prepaid insurance 5,000 7,000 Accounts payable 26,000 28,000 Wages payable 12,000 13,000 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. Net Income Cash Flow from Operating Activities Add (deduct) items to convert net income to cash basis Accounts Receivable $ Lic ts Increase Inventory Decrease Prepaid Insurance Accounts Payable Wages Payable Cash Provided by Operating Activities " $