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Exercise 23-6 Culver Companys income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $836,000 Operating expenses (excluding depreciation)

Exercise 23-6

Culver Companys income statement for the year ended December 31, 2017, contained the following condensed information.

Service revenue

$836,000

Operating expenses (excluding depreciation)

$626,000

Depreciation expense

60,000

Loss on sale of equipment

26,000

712,000

Income before income taxes

124,000

Income tax expense

40,000

Net income

$84,000

Culvers balance sheet contained the following comparative data at December 31.

2017

2016

Accounts receivable $38,000 $53,000
Accounts payable 41,000 30,000
Income taxes payable 4,100 8,400

(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).)

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CULVER COMPANY Statement of Cash Flows (Partial) Adjustments to reconcile net income to

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