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 Cost of goods sold $1,155,000 $1,725,000 Wages expense 315,000 Rent expense 93,000 Insurance expense 67,500 1,630,500 Net income $94,500 Additional information about the company includes: End of Beginning of Year Year Accounts receivable $111,000 $73,500 Inventory 105,000 129,000 Prepaid insurance 7,500 10,500 Accounts payable 39,000 42,000 Wages payable 18,000 19,500 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. Net Income Cash Flow from Operating Activities Add (deduct) items to convert net income to cash basis Accounts Receivable Inventory Prepaid Insurance Accounts Payable Wages Payable Cash Provided by Operating Activities $