Cash Flow From Operating Activities (Indirect Method) The Smithfield Company owns no plant assets and had the following income statement for the year:

Sales revenue		$1,120,000
Cost of goods sold	$770,000
Wages expense	210,000
Rent expense	65,000
Insurance expense	45,000	1,090,000
Net income		$30,000

Additional information about the company includes:

	End of Year	Beginning of Year
Accounts receivable	$74,000	$49,000
Inventory	70,000	74,000
Prepaid insurance	5,000	7,000
Accounts payable	26,000	28,000
Wages payable	11,000	13,000

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
	Add (deduct) items to convert net income to cash basis
	Accounts Receivable	Increase Decrease
	Inventory	Increase Decrease
	Prepaid Insurance	Increase Decrease
	Accounts Payable	Increase Decrease
	Wages Payable	Increase Decrease
	Cash Provided by Operating Activities