Operating Cash Flows (Direct Method) Using the information below, calculate the cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense. The Lincoln Company owns no plant assets and had the following income statement for the year:

Sales revenue Cost of goods sold $752,000 Wages expense Rent expense Insurance expense Net income $1,200,000 176,000 67,200 24,000 1,019,200 $180,800 Additional information about the company includes Accounts receivable Inventory Prepaid insurance Accounts payable Wages payable End of Year $86,400 96,000 12,800 35,200 14,400 Beginning of Year $78,400 105,600 11,200 28,800 17,600 Hint: Remember to enter cash outflow answers (transactions that reduce cash) and expenses (COGS and wages) as negative numbers Sales Revenue 1,200, (8,000 1,192 Accounts Receivable Increase Cash Received from Customers 752,0 x 9,600 6,400 768,0 x Cost of Goods Sold Inventory Decrease Accounts Payable Increase Cash Paid for Merchandise Purchased 176,0 x Wages Expense Wages Payable Decrease Cash Paid to Employees (3,200 24,00( x (1,600 22,400x Insurance Expense Prepaid Insurance Increase Cash Paid for Insurance Cash Flow from Operating Activities Cash Received from Customers 1,192 Cash Paid for Merchandise Purchased 768,Ox 172,8( x 67,200x 22,40 x 2,222,x Cash Paid to Employees Cash Paid for Rent Cash Paid for Insurance Cash Provided by Operating Activities Check