Net Cash Flow from Operating Activities (Indirect Method) Lincoln Company owns no plant assets and reported the following income statement for the current year: $ 700,000 Sales Cost of goods sold Wages expense Rent expense $425,000 110,000 38,000 Insurance expense 15,000 Net income Additional balance sheet information about the company follows. End of Year Beginning of Year $ 56,000 $ 48,000 60,000 66,000 7,000 5,000 22,000 18,000 11,000 15,000 Accounts receivable Inventory Prepaid insurance Accounts payable Wages payable 588,000 $ 112,000 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 Add (Deduct) Items to Convert Net Income to Cash Basis Accounts Receivable Inventory Prepaid Insurance Accounts Payable Wages Payable Net Cash Provided by Operating Activities $ 0 0 0 0 0 0 0

Net Cash Flow from Operating Activities (Indirect Method) Lincoln Company owns no plant assets and reported the following income statement for the current year: Additional balance sheet information about the company follows: 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