The Arcadia Company owns no plant assets and had the following income statement for the year: Sales revenue $1,235,000 Cost of goods sold $871,000 Wages expense 273,000 Rent expense 54,600 Utilities expense 19,500 1,218,100 Net income $16,900 Additional information about the company includes: End of Beginning of Year Year Accounts receivable $83,200 $76,700 Inventory 78,000 111,800 Prepaid rent 10,400 9,100 Accounts payable 28,600 36,400 Wages payable 11,700 7,800 Use the preceding information to calculate the cash flow from operating activities using the indirect method. Remember to use negative signs with your answers when appropriate. Cash Flow from Operating Activities Net Income Add (deduct) items to convert net income to cash basis Accounts Receivable Inventory Prepaid Rent Accounts Payable Wages Payable Cash Provided by Operating Activities
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