Exercise 23-5 Blue Company’s income statement for the year ended December 31, 20
ID: 2597978 • Letter: E
Question
Exercise 23-5
Blue Company’s income statement for the year ended December 31, 2017, contained the following condensed information.
$844,000
$628,000
60,000
26,000
714,000
130,000
40,000
$90,000
Blue’s balance sheet contained the following comparative data at December 31.
2017
2016
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of cash flows using the direct method.
$844,000
Operating expenses (excluding depreciation)$628,000
Depreciation expense60,000
Loss on sale of equipment26,000
714,000
Income before income taxes130,000
Income tax expense40,000
Net income$90,000
Explanation / Answer
Prepare the operating activities section of the statement of cash flows using the direct method
cash received from customer 863000 Cash paid to supplier (614000) Cash paid for income tax (44100) Net cash flow from operating activity 204900Related Questions
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