Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Operating Cash Flows (Direct Method) The Lincoln Company owns no plant assets and had the following income statement for the year: Sales revenue $750,000 Cost
Operating Cash Flows (Direct Method)
The Lincoln Company owns no plant assets and had the following income statement for the year:
Sales revenue | $750,000 | |
Cost of goods sold | $470,000 | |
Wages expense | 110,000 | |
Rent expense | 42,000 | |
Insurance expense | 15,000 | 637,000 |
Net income | $113,000 |
Selected account balances include:
End of Year | Beginning of Year | |
---|---|---|
Accounts receivable | $54,000 | $49,000 |
Inventory | 60,000 | 66,000 |
Prepaid insurance | 8,000 | 7,000 |
Accounts payable | 22,000 | 18,000 |
Wages payable | 9,000 | 11,000 |
Determine the following for Lincoln Company: a. Cash received from customers $Answer
b. Cash paid for merchandise purchased $Answer
c. Cash paid to employees $Answer
d. Cash paid for insurance $Answer
e.Determine the amount of cash provided by (used by) operating activities at Lincoln Company. $Answer
please explain how you get e
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started