Net Cash Flow from Operating Activities $($Indirect Method$)$

Lincoln Company owns no plant assets and reported the following income statement for the current year:

Sales $ $700,000$

Cost of goods sold $ $425,000$

Wages expense $110,000$

Rent expense $38,000$

Insurance expense $15,000588,000$

Net income $ $112,000$

Additional balance sheet information about the company follows.

End of Year Beginning of Year

Accounts receivable $ $56,000$ $ $48,000$

Inventory $60,00066,000$

Prepaid insurance $7,0005,000$

Accounts payable $22,00018,000$

Wages payable $11,00015,000$

Use the information to calculate the net cash flow from operating activities under the indirect method.

Use negative signs with answers to show a decrease in cash.

Net income Answer $1$

$0$

Add $($Deduct$)$ Items to Convert Net Income to Cash Basis

Accounts Receivable Answer $2$

$0$

Inventory Answer $3$

$0$

Prepaid Insurance Answer $4$

$0$

Accounts Payable Answer $5$

$0$

Wages Payable Answer $6$

$0$

Net Cash Provided by Operating Activities Answer $7$

$0$