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
Statement of Cash Flows (Partial)
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 |
Related questions
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).)
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.
