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 Cost of goods sold Wages expense Rent expense Utilities expense Net income $1,140,000 $804,000 252,000 50,400 18,000 1,124,400 $15,600 Additional information about the company includes End of Year Beginning of Year Accounts receivable Inventory Prepaid rent Accounts payable Wages payable $76,800 72,000 9,600 26,400 10,800 $70,800 103,200 8,400 33,600 7200 Use the preceding information to calculate the cash flow from operating activities using the indirect method Remember to use negative signs with your 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 0 Wages Payable Cash Provided by Operating Activities