Question 3 Partially correct Mark 11.00 out of 20.00 P Flag question Edit question Operating Cash Flows (Direct Method) Lincoln Company owns no plant assets and reported the following income statement for the current year: Sales $ 780,000 Cost of goods sold $430,000 Wages expense 90,000 38,000 Rent expense Insurance expense 14,000 572,000 Net income $ 208,000 Additional balance sheet information about the company follows: End of Year Beginning of Year $ 53,000 $ 49,000 Accounts receivable 60,000 65,000 8,000 7,000 Inventory Prepaid insurance Accounts payable Wages payable 20,000 18,000 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 $ 780,000 Accounts Receivable (4,000) Cash Received from Customers $ 77,600 x Cost of Goods Sold $ 430,000 (5,000) Inventory Accounts Payable (2,000) Cash Paid for Merchandise Purchased $ 423,000 90,000 Wages Expense $ Wages Payable Cash Paid to Employees $ 9,000 x 99,000 x Insurance Expense $ 14,000 Prepaid Insurance 8,000 x Cash Paid for Insurance $ 22,000 x Do not use negative signs for this portion of the problem. Operating Activities Cash Received from Customers $ 776,000 Cash Paid for Merchandise Purchased $ 423,000 Cash Paid to Employees 99,000 x Cash Paid for Rent 38,000 Cash Paid for Insurance 22,000 x 0 x Net Cash Provided by Operating Activities $ 0 x