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: Use the preceding information to calculate the cash flow from operating activities using the indirect method **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:- Sales revenue: $750,000- Cost of goods sold: $470,000- Wages expense: $110,000- Rent expense: $42,000- Insurance expense: $15,000- Total expenses: $637,000- Net income: $113,000**Additional Information about the Company:**| | End of Year | Beginning of Year ||--------------------------|-------------|-------------------|| Accounts receivable | $54,000 | $49,000 || Inventory | $60,000 | $66,000 || Prepaid insurance | $8,000 | $7,000 || Accounts payable | $22,000 | $18,000 || Wages payable | $9,000 | $11,000 |**Instructions:**Use the preceding information to calculate the cash flow from operating activities using the indirect method.

The question is based on the concept of Cashflow Statement.

Cash Flow from Operating Activities (Indirect Method) The Lincoln Company owns no plant assets and had the following income statement for the year: Use the preceding information to calculate the cash flow from operating activities using the indirect met

Cash Flow from Operating Activities (Indirect Method) The Lincoln Company owns no plant assets and had the following income statement for the year: Use the preceding information to calculate the cash flow from operating activities using the indirect met

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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