Krauss Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $840,000 Operating expenses (excluding depreciation) $624,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 710,000 Income before income taxes 130,000 Income tax expense 40,000 Net income $ 90,000 Krauss's balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $37,000 $54,000 Accounts payable 41,000 31,000 Income taxes payable 4,000 8,500 (Accounts payable pertains to operating expenses.) Instructions Prepare the operating activities section of the statement of cash flows using the direct method
Krauss Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $840,000 Operating expenses (excluding depreciation) $624,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 710,000 Income before income taxes 130,000 Income tax expense 40,000 Net income $ 90,000 Krauss's balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $37,000 $54,000 Accounts payable 41,000 31,000 Income taxes payable 4,000 8,500 (Accounts payable pertains to operating expenses.) Instructions Prepare the operating activities section of the statement of cash flows using the direct method
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10MC: Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended...
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Krauss Company's income statement for the year ended December 31, 2020, contained the following condensed information.
| Service revenue | $840,000 | |||
| Operating expenses (excluding |
$624,000 | |||
| Depreciation expense | 60,000 | |||
| Loss on sale of equipment | 26,000 | 710,000 | ||
| Income before income taxes | 130,000 | |||
| Income tax expense | 40,000 | |||
| Net income | $ 90,000 |
Krauss's balance sheet contained the following comparative data at December 31.
| 2020 | 2019 | |||
| Accounts receivable | $37,000 | $54,000 | ||
| Accounts payable | 41,000 | 31,000 | ||
| Income taxes payable | 4,000 | 8,500 |
(Accounts payable pertains to operating expenses.)
Instructions
Prepare the operating activities section of the statement of
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