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 $1,275,000 Cost of goods sold $799,000 Wages expense 187,000 Rent expense 71,400 Insurance expense 25,500 1,082,900 Net income $192,100 Additional information about the company includes: End of Year Beginning of Year Accounts receivable $91,800 $83,300 Inventory 102,000 112,200 Prepaid insurance 13,600 11,900 Accounts payable 37,400 30,600 Wages payable 15,300 18,700 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 Answer Add (deduct) items to convert net income to cash basis Accounts Receivable Answer Answer Inventory Answer Answer Prepaid Insurance Answer Answer Accounts Payable Answer Answer Wages Payable Answer Answer Cash Provided by Operating Activities Answer
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 $1,275,000 Cost of goods sold $799,000 Wages expense 187,000 Rent expense 71,400 Insurance expense 25,500 1,082,900 Net income $192,100 Additional information about the company includes: End of Year Beginning of Year Accounts receivable $91,800 $83,300 Inventory 102,000 112,200 Prepaid insurance 13,600 11,900 Accounts payable 37,400 30,600 Wages payable 15,300 18,700 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 Answer Add (deduct) items to convert net income to cash basis Accounts Receivable Answer Answer Inventory Answer Answer Prepaid Insurance Answer Answer Accounts Payable Answer Answer Wages Payable Answer Answer Cash Provided by Operating Activities Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Lincoln Company owns no plant assets and had the following income statement for the year:
| Sales revenue | $1,275,000 | |
| Cost of goods sold | $799,000 | |
| Wages expense | 187,000 | |
| Rent expense | 71,400 | |
| Insurance expense | 25,500 | 1,082,900 |
| Net income | $192,100 |
Additional information about the company includes:
| End of Year | Beginning of Year | |
|---|---|---|
| $91,800 | $83,300 | |
| Inventory | 102,000 | 112,200 |
| Prepaid insurance | 13,600 | 11,900 |
| Accounts payable | 37,400 | 30,600 |
| Wages payable | 15,300 | 18,700 |
Use the preceding information to calculate the cash flow from operating activities using the indirect method.
Use negative signs with
| Cash Flow from Operating Activities | |||
|---|---|---|---|
| Net Income | Answer | ||
| Add (deduct) items to convert net income to cash basis | |||
| Accounts Receivable | Answer | Answer | |
| Inventory | Answer | Answer | |
| Prepaid Insurance | Answer | Answer | |
| Accounts Payable | Answer | Answer | |
| Wages Payable | Answer | Answer | |
| Cash Provided by Operating Activities | Answer |
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