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Computer Service and Repair was started five years ago by two college roommates. The company's comparative statements of financial position and statement of earnings are
Computer Service and Repair was started five years ago by two college roommates. The company's comparative statements of financial position and statement of earnings are presented below, along with additional information. Current Year Prior Year Statement of Financial Position at December 31 Cash $ 6,765 Accounts receivable 1,150 $8,815 590 Prepaid expenses 550 95 Equipment 530 0 Accumulated depreciation (95) 0 $ 8,900 $9,500 Wages payable $ 440 $1,550 Short-term note payable. 255 0 Contributed capital Retained earnings 2,800 2,800 5,405 5,150 $ 8,900 $9,500 Statement of Earnings for Current Year Service revenue $43,000 Depreciation expense 95 34,500 8,150 $ 255 Salaries expense Other expenses Net earnings Additional Data: 1. Prepaid expenses relate to rent paid in advance. 2. Other expenses were paid in cash. 3. Purchased equipment for $530 cash at the beginning of the current year and recorded $95 of depreciation expense at the end of the current year. 4. At the end of the current year, the company signed a short-term note payable to the bank for $255. Required: Prepare the operating activities section of the statement of cash flows for Computer Service and Repair using the indirect method. (Negative answers should be indicated by a minus sign.)
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