Cash Flow from Operating Activities $($Indirect Method$)$

The Arcadia Company owns no plant assets and had the following income statement for the year:

Sales revenue $$1,045,000$

Cost of goods sold $$737,000$

Wages expense $231,000$

Rent expense $46,200$

Utilities expense $16,5001,030,700$

Net income $$14,300$

Additional information about the company includes:

End of

Year Beginning of

Year

Accounts receivable $$70,400$ $$64,900$

Inventory $66,00094,600$

Prepaid rent $8,8007,700$

Accounts payable $24,20030,800$

Wages payable $9,9006,600$

Use the preceding information to calculate the cash flow from operating activities using the indirect method.

Remember to use negative signs with answers when appropriate.

Cash Flow from Operating Activities

Net Income

Add $($deduct$)$ items to convert net income to cash basis

Accounts Receivable

Inventory

Prepaid Rent

Accounts Payable

Wages Payable

Cash Provided by Operating Activities