Operating Cash Flows (Direct Method) The Lincoln Company owns no plant assets and had the following income statement for the year Sales revenue $800.000 Cost of goods sold $470.000 was expense 120.000 Rent expense 42.000 Insurance expense 15.000 47.000 Net income $15.000 Additional information about the company includes End of Year Beginning of Year Accounts receivable 554000 549.000 Inventory 60,000 76.000 Prepaid insurance 3000 7000 Accounts payable 24.000 18.000 Wages payable 9.000 11.000 Calculate the cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense. Hint: Remember to enter cash outflow answers (transactions that reduce cash) and expenses (COGS and wagesias negative numbers Calculate the cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense. Hint: Remember to enter cash outflow answers (transactions that reduce cash) and expenses (COGS and wages) as negative numbers. Sales Revenue $ OX Accounts Receivable Increase (5000) Cash Received from Customers 5 OX Cost of Goods Sold 5 0.X Inventory Decrease 6,000 X Accounts Payable increase OM Cash Paid for Merchandise Purchased ON Wages Expense $ Wages Payable Decrease Cash Paid to Employees 5 OK Insurance Expense 5 ON Prepaid insurance increase OX Cash Paid for insurance S Cash Flow from Operating Activities Cash Received from Customers S OK Cash Paid for Merchandise Purchased OX Cash Paid to Employees OX Cash Paid for Rent 0.X Cash Paid for insurance 0X Cash Provided by Operating Activities 5 0. OX 0 OX Check