Data for Rewe Company are presented in P12-5A.

In P12-5A,

Rewe Company's income statement contained the condensed information below.

Rewe's balance sheets contained the following comparative data at December 31.

Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.

Transcribed Image Text:

REWE COMPANY Income Statement For the Year Ended December 31, 2017 Service revenue 970,000 $614,000 55,000 16,000 es, ation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income 685,000 285,000 56,000 $229,000 Accounts receivable Accounts payable Income taxes payable 2017 $70,000 41,000 13,000 2016 $60,000 32,000 7,000