Operating Cash Flows (Direct Method) Lincoln Company owns no plant assets and reported the following income statement for the current year Sales $ 790,000 Cost of goods sold $430,000 Wages expense 110,000 Rent expense 42.000 Insurance expense 11.000 593,000 Net income $ 197,000 Additional balance sheet information about the company follows: End of Year Beginning of Year Accounts receivable $50,000 $49.000 Inventory 60.000 61.000 Prepaid insurance 16,000 7.000 Accounts payable 22.000 18.000 Wages payable 9,000 10.000 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 5 790,000 Accounts Receivable (1.000) Cash Received from Customers 5 197.000 x