LO2 E11-4A. Cash Flow from Operating Activities (Indirect Method) The Lincoln Company owns no plant assets and had the following income statement for the year: MBC $750,000 ... Sales revenue....... Cost of goods sold .... Wages expense ..... Rent expense....... Insurance expense. . . . . . . . . . . . . Net income... $470,000 110,000 42,000 15,000 637,000 $113,000 Additional information about the company includes: End of Year Beginning of Year : : Accounts receivable........... Inventory................. Prepaid insurance. ............. Accounts payable..................... Wages payable....... $54,000 60,000 8,000 22,000 9,000 $49,000 66,000 7,000 18,000 11,000 : Use the preceding information to calculate the cash flow from operating activities using the indi- rect method