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Blackwell Company's income statement for 2020 consisted of: Revenues 1,220,000 Cost of goods sold 627,000 Operating expenses 295,000 Depreciation expense 60,000 Interest expense 26,000 Gain
Blackwell Company's income statement for 2020 consisted of: | ||||||||
Revenues | 1,220,000 | |||||||
Cost of goods sold | 627,000 | |||||||
Operating expenses | 295,000 | |||||||
Depreciation expense | 60,000 | |||||||
Interest expense | 26,000 | |||||||
Gain on the sale of machinery | (12,000) | |||||||
Loss on the sale of investments | 8,000 | 1,004,000 | ||||||
Income before income tax | 216,000 | |||||||
Income tax expense | 40,000 | |||||||
Net income | 176,000 | |||||||
Blackwell's comparative balance sheet information for 2020 included: | ||||||||
12/31/20 | 12/31/19 | |||||||
Accounts receivable | 268,000 | 257,000 | ||||||
Accounts payable | 47,000 | 42,000 | ||||||
Income taxes payable | 17,000 | 13,500 | ||||||
Interest payable | 9,000 | 7,500 | ||||||
Bonds payable | 500,000 | 500,000 | ||||||
Discount on bonds payable | 26,000 | 28,000 | ||||||
Prepare the Cash flows from operating activities section of Blackwell's 2020 Statement of Cash Flows using the indirect method | ||||||||
and the required disclosures for interest and income tax expense. |
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