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Cash Flow from Operating Activities (Indirect Method) The Lincoln Company owns no plant assets and had the following income statement for the year: $1,425,000 Sales revenue Cost of goods sold $893,000 Wages expense 209,000 Rent expense 79,800 Insurance expense 28,500 Net income 1,210,300 $214,700 Additional information about the company includes: Accounts receivable Inventory Prepaid insurance Accounts payable Wages payable End of Year Beginning of Year $102,600 $93,100 114,000 125,400 15,200 13,300 41,800 34,200 17,100 20,900 Wages payable 20.900 Use the preceding information to calculate the cash flow from operating activities using the Indirect method. Use negative signs with cash outflow answers. Cash Flow from Operating Activities Net Income Add (deduct) items to convert net income to cash basis Accounts Receivable Increase Inventory Decrease Prepaid Insurance Increase Accounts Payable Increase Wages Payable Decrease Cash Provided by Operating Activities 1 oooooo 1 1