Ch 12 Homework Question 17 of 18 View Policies Current Attempt in Progress Carla Vista Company's income statement contained the following condensed information. Carla Vista Company Income Statement For the Year Ended December 31, 2025 Service revenue $2,425,000 Operating expenses, excluding depreciation $1,535,000 Depreciation expense 137,500 Loss on disposal of plant assets 40,000 1,712,500 Income before income taxes 712,500 Income tax expense Net income 140.000 $572,500 Carla Vista's balance sheets contained the following comparative data at December 31. 2025 2024 Accounts receivable Accounts payable $175,000 $150,000 102,500 80,000 Income taxes payable 32.500 17,500 -/7! Accounts payable pertain 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 eg.-15,000 or in parenthesis e.g. (15,000).) CARLA VISTA COMPANY Statement of Cash Flows (Partial) - Indirect Method $ Adjustments to reconcile net income to eTextbook and Media Save for Later $ Attempts: 0 of 3 used Submit Answer SUPPORT