(Preparation of Operating Activities Section-Direct Method)
Norman Company's income statement for the year ended December 31,2010, contained the following condensed information.
Revenue from fees $840,000
Operating expenses (excl. depreciation) $624,000
Depreciation expense 60,000
Loss on sale of equipment 26,000 710,000
Income before taxes 130,000
Income tax expense 40,000
Net income $90,000
Norman's balance sheet contained the following comparative data atDecember 31.
2010 2009
Accounts receivable $37,000 $59,000
Accounts payable 46,000 31,000
Income taxes payable 4,000 8,500
(Accounts payable pertains to operating expenses.)
Instructions
Complete the operating activities section of the statement of cashflows using the direct method. (Enter all amounts as positive andsubtract where necessary. List amounts from largest to smallest eg10, 5, 3, 2.)
NORMAN COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2010
Cash flows from operating activities
1. $
2. $
3.
4.
Net cash used or provided by operating activities $
Norman Company's income statement for the year ended December 31,2010, contained the following condensed information.
Revenue from fees $840,000
Operating expenses (excl. depreciation) $624,000
Depreciation expense 60,000
Loss on sale of equipment 26,000 710,000
Income before taxes 130,000
Income tax expense 40,000
Net income $90,000
Norman's balance sheet contained the following comparative data atDecember 31.
2010 2009
Accounts receivable $37,000 $59,000
Accounts payable 46,000 31,000
Income taxes payable 4,000 8,500
(Accounts payable pertains to operating expenses.)
Instructions
Complete the operating activities section of the statement of cashflows using the direct method. (Enter all amounts as positive andsubtract where necessary. List amounts from largest to smallest eg10, 5, 3, 2.)
NORMAN COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2010
Cash flows from operating activities
1. $
2. $
3.
4.
Net cash used or provided by operating activities $
Related questions
Flounder Companyâs income statement for the year ended December31, 2017, contained the following condensed information.
| Service revenue | $839,000 | |||
| Operating expenses (excluding depreciation) | $630,000 | |||
| Depreciation expense | 59,000 | |||
| Loss on sale of equipment | 26,000 | 715,000 | ||
| Income before income taxes | 124,000 | |||
| Income tax expense | 40,000 | |||
| Net income | $84,000 |
Flounderâs balance sheet contained the following comparative dataat December 31.
2017 | 2016 | |||
| Accounts receivable | $38,000 | $56,000 | ||
| Accounts payable | 42,000 | 31,000 | ||
| Income taxes payable | 4,100 | 8,000 |
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of cashflows using the direct method.
FLOUNDER COMPANY |
Bonita Companyâs income statement for the year ended December 31, 2017, contained the following condensed information.
| Service revenue | $841,000 | |||
| Operating expenses (excluding depreciation) | $624,000 | |||
| Depreciation expense | 59,000 | |||
| Loss on sale of equipment | 25,000 | 708,000 | ||
| Income before income taxes | 133,000 | |||
| Income tax expense | 40,000 | |||
| Net income | $93,000 |
Bonitaâs balance sheet contained the following comparative data at December 31.
| 2017 | 2016 | |||
| Accounts receivable | $35,000 | $53,000 | ||
| Accounts payable | 41,000 | 31,000 | ||
| Income taxes payable | 3,800 | 8,000 |
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of cash flows using the indirect method.
Bridgeport Companyâs income statement for the year endedDecember 31, 2017, contained the following condensedinformation.
| Service revenue | $842,000 | |||
| Operating expenses (excluding depreciation) | $626,000 | |||
| Depreciation expense | 61,000 | |||
| Loss on sale of equipment | 27,000 | 714,000 | ||
| Income before income taxes | 128,000 | |||
| Income tax expense | 40,000 | |||
| Net income | $88,000 |
Bridgeportâs balance sheet contained the following comparative dataat December 31.
2017 | 2016 | |||
| Accounts receivable | $37,000 | $56,000 | ||
| Accounts payable | 39,000 | 33,000 | ||
| Income taxes payable | 4,100 | 8,400 |
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of cashflows using the indirect method. (Show amounts thatdecrease cash flow with either a - sign e.g. -15,000 or inparenthesis e.g. (15,000).)
