Refer to the information in Exercise 4-35. Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense. Also, compute its operating cash flow to current liabilities (OCFCL) ratio. (Assume current liabilities consist of accounts payable and wages payable.)

Use the information to

a. calculate the net cash flow from operating activities under the indirect method.

b. compute its operating cash flow to current liabilities (OCFCL) ratio. (Assume current liabilities consist of accounts payable and wages payable.)

Data from Exercise 4-35:

Lincoln Company owns no plant assets and reported the following income statement for the current year:

Additional balance sheet information about the company follows:

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Sales..... $750,000 Cost of goods sold. Wages expense. Rent expense. Insurance expense. $470,000 110,000 42,000 15,000 637,000 Net income.. $113,000 ....