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 $930,000 Cost of goods sold $640,000 Wages expense 210,000 Rent expense 42,000 Utilities expense 11,000 903,000 Net income $27,000 Additional information about the company includes: End of Year Beginning of Year Accounts receivable $67,000 $59,000 Inventory 62,000 86,000 Prepaid rent 8,000 7,000 Accounts payable 22,000 28,000 Wages payable 9,000 7,000 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 Answer Add (deduct) items to convert net income to cash basis Accounts Receivable Answer Answer Inventory Answer Answer Prepaid Rent Answer Answer Accounts Payable Answer Answer Wages Payable Answer Answer Cash Provided by Operating Activities