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The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $950,000 Cost of goods sold $670,000 Wages
The Arcadia Company owns no plant assets and had the following income statement for the year:
Sales revenue | $950,000 | |
Cost of goods sold | $670,000 | |
Wages expense | 210,000 | |
Rent expense | 42,000 | |
Utilities expense | 15,000 | 937,000 |
Net income | $13,000 |
Additional information about the company includes:
End of | Beginning | |
---|---|---|
Year | of Year | |
Accounts receivable | $64,000 | $59,000 |
Inventory | 60,000 | 86,000 |
Prepaid rent | 8,000 | 7,000 |
Accounts payable | 22,000 | 28,000 |
Wages payable | 9,000 | 6,000 |
Use the preceding information to calculate the cash flow from operating activities using the indirect method. $Answer
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