Operating Cash Flows $($Direct Method$)$

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

Sales $$700,000$

Cost of goods sold $ $425,000$

Wages expense $110,000$

Rent expense $38,000$

Insurance expense $15,000588,000$

Net income $$112,000$

Additional balance sheet information about the company follows.

End of Year Beginning of Year

Accounts receivable $$56,000$ $$48,000$

Inventory $60,00066,000$

Prepaid insurance $7,0005,000$

Accounts payable $22,00018,000$

Wages payable $11,00015,000$

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

Use a negative sign with your answer to show that a change in account reduced cash received or cash paid.

Sales Answer $1$

$0$

Accounts Receivable Answer $2$

$0$

Cash Received from Customers Answer $3$

$0$

Cost of Goods Sold Answer $4$

$0$

Inventory Answer $5$

$0$

Accounts Payable Answer $6$

$0$

Cash Paid forMerchandise Purchased Answer $7$

$0$

Wages Expense Answer $8$

$0$

Wages Payable Answer $9$

$0$

Cash Paid to Employees Answer $10$

$0$

Insurance Expense Answer $11$

$0$

Prepaid Insurance Answer $12$

$0$

Cash Paid for Insurance Answer $13$

$0$

Do not use negative signs for this portion of the problem.

Operating Activities

Cash Received from Customers Answer $14$

$0$

Cash Paid for Merchandise Purchased Answer $15$

$0$

Cash Paid to Employees Answer $16$

$0$

Cash Paid for Rent Answer $17$

$0$

Cash Paid for Insurance Answer $18$

$0$

Answer $19$

$0$

Net Cash Provided by Operating Activities Answer $20$

$0$