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Buffalo Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $834,000 $621,000 Operating expenses (excluding depreciation) Depreciation
Buffalo Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $834,000 $621,000 Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment 60,000 26,000 707,000 Income before income taxes 127,000 Income tax expense 41,000 Net income $86,000 Buffalo's balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $39,000 $56,000 40,000 30,000 Accounts payable Income taxes payable 4,200 8,700 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) BUFFALO COMPANY Statement of Cash Flows (Partial) $ Adjustments to reconcile net income to $ $
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