Depreciation and Cash Flow

O'hare Company's only asset as of January 1, 2016, was a limousine. During 2016, only the following three transactions occurred:

Services of $118,900 were provided on account. All accounts receivable were collected. Depreciation on the limousine was $18,000.

Required:

1. Develop an income statement for O'hare for 2016.

O'hare Company
Income Statement
For The Year Ended December 31, 2016
Service revenue	$
Depreciation expense
Net income	$

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1) Prepare income statement with company name, statement name and date.

2. Determine the amount of the net cash inflow for O'hare for 2016. $

3. The amount of net income does not equal the amount of the net cash inflow because of depreciation expense . This is a noncash charge which does not affect cash. This needs to be added back to net income to determine the amount of net cash inflow.

4. If O'hare developed a cash flow statement for 2016 using the indirect method, what amount would appear in the category titled Cash Flow from Operating Activities? $