Question text

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		$1,265,000
Cost of goods sold	$847,000
Wages expense	231,000
Rent expense	68,200
Insurance expense	49,500	1,195,700
Net income		$69,300

Additional information about the company includes:

	End of Year	Beginning of Year
Accounts receivable	$81,400	$53,900
Inventory	77,000	94,600
Prepaid insurance	5,500	7,700
Accounts payable	28,600	30,800
Wages payable	13,200	14,300

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.

Cash Flow from Operating Activities
	Net Income		$Answer
	Add (deduct) items to convert net income to cash basis
	Accounts Receivable
	Inventory
	Prepaid Insurance
	Accounts Payable
	Wages Payable
	Cash Provided by Operating Activities		$Answer