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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 |
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