19.) Operating Cash Flows (Direct Method) Using the information below, calculate the cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense. The Lincoln Company owns no plant assets and had the following income statement for the year:

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

Additional information about the company includes:

Accounts receivable	$54,000	$49,000
Inventory	60,000	66,000
Prepaid insurance	8,000	7,000
Accounts payable	22,000	18,000
Wages payable	9,000	11,000

*Hint: Remember to enter cash outflow answers (transactions that reduce cash) and expenses (COGS and wages) as negative numbers.

Sales Revenue	$Answer
Accounts Receivable Increase	Answer
Cash Received from Customers	$Answer
Cost of Goods Sold	$Answer
Inventory Decrease	Answer
Accounts Payable Increase	Answer
Cash Paid for Merchandise Purchased	$Answer
Wages Expense	$Answer
Wages Payable Decrease	Answer
Cash Paid to Employees	$Answer
Insurance Expense	$Answer
Prepaid Insurance Increase	Answer
Cash Paid for Insurance	$Answer
Cash Flow from Operating Activities
Cash Received from Customers	$Answer
Cash Paid for Merchandise Purchased	Answer
Cash Paid to Employees	Answer
Cash Paid for Rent	Answer
Cash Paid for Insurance	Answer
Cash Provided by Operating Activities	$Answer

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