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Question text Cash Flow From Operating Activities (Indirect Method) The Smithfield Company owns no plant...

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Accounting

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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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