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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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