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Analyzing Operating Cash Flows (Direct Method) Lincoln Company owns no plant assets and reported the...

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Accounting

Analyzing Operating Cash Flows (Direct Method) Lincoln Company owns no plant assets and reported the following income statement for the current year:

Sales $600,000
Cost of goods sold $376,000
Wages expense 88,000
Rent expense 33,600
Insurance expense 12,000 509,600
Net income $90,400

End of Year Beg. of Year
Accounts receivable $59,400 $53,900
Inventory 66,000 72,600
Prepaid insurance 8,800 7,700
Accounts payable 24,200 19,800
Wages payable 9,900 12,100

Calculate the net cash flow from operating activities using the direct method. Show a related cash flow for each revenue and expense.

Cash Flows from Operating Activities (Direct Method)
Cash Received from Customers Answer
Cash Paid for Merchandise Purchased Answer
Cash Paid to Employees Answer
Cash Paid for Rent Answer
Cash Paid for Insurance Answer Answer
Net Cash Provided by Operating Activities Answer

Compute its operating cash flow to current liabilities (OCFCL) ratio. (Assume current liabilities consist of accounts payable and wages payable.)

Round answer to two decimal places. Answer

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