The income statement for the year ended December 31, 2017, for Kosinski Manufacturing Company contains the following condensed information.

Included in operating expenses is a $24,000 loss resulting from the sale of equipment for $270,000 cash. Equipment was purchased at a cost of $750,000.

The following balances are reported on Kosinski’s comparative balance sheets at December 31.

Income tax expense of $353,000 represents the amount paid in 2017. Dividends declared and paid in 2017 totaled $200,000.

Instructions 

Prepare the statement of cash flows using the indirect method.

Transcribed Image Text:

KOSINSKI MANUFACTURING COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue Operating expenses (excluding depreciation) Depreciation expense Income before income taxes Income tax expense Net income $4,920,000 880,000 $6,583,000 5,800,000 783,000 353,000 $ 430,000