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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

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