Calculate the net cash flow from operating activities

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Reference no: EM132215374

Question - Operating Cash Flows (Direct Method) - Lincoln Company owns no plant assets and reported the following income statement for the current year:

Sales

 

$700,000

Cost of goods sold

$425,000

 

Wages expense

110,000

 

Rent expense

38,000

 

Insurance expense

15,000

588,000

Net income

 

$112,000

Additional balance sheet information about the company follows.

 

End of Year

Beginning of Year

Accounts receivable

$56,000

$48,000

Inventory

60,000

66,000

Prepaid insurance

7,000

5,000

Accounts payable

22,000

18,000

Wages payable

11,000

15,000

Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense.

Reference no: EM132215374

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